Finally, the day has arrived and you are ready to close on your new home. This is an exciting time for you, because it means you get to take possession of your home. What should you expect on closing day?
Signing the Final Papers
You may have already signed mounds of paperwork when you decided to buy your home, but there are a few more to make the purchase final. On closing day, you will sign a disclosure that outlines the cost of the home, as well as the terms. This is generally given to you three days before the actual closing.
When you have a mortgage, you will also need to sign a document that says you will pay the loan. This is often called a promissory or mortgage note. It includes the amount of money you will be repaying, the dates each payment is due, the amount of interest you will pay, and how long you will be repaying the loan. It should also tell you where to make the payments and what will happen if you default on them.
After signing these papers, you will also have to sign a deed of trust. Basically, this document says that if you do not make payments, the lender will foreclose on the home. It is a good idea to have a lawyer represent your interests as closing. Bukowski Law Firm, P.C. is an example of a firm that helps with real estate closing austin tx .
Closing Fees and Escrow
At the closing, you may be required to pay closing costs. The seller may opt to pay these fees or they can be included in the loan. Closing costs can include the appraisal fee, cost of your credit report, seller’s attorney fees, a closing fee, home inspection fee, and various other charges. Not all of these fees may apply.
You will also be asked to put money into an escrow account to pay for home insurance and taxes for a period of time. It may be a couple of months worth or up to a year. Buying a home is a lengthy process. It requires a lot of paperwork and patience.