The closing, also known as settlement, is the final stage of a real estate transaction. It’s where all the paperwork is signed, funds are disbursed, and ownership of the property officially transfers from the seller to the buyer. Knowing what to expect can help alleviate stress and ensure a smoother experience.
Before the closing, your title company will have conducted a thorough title search and prepared all the necessary documents. They’ll also work with your lender to finalize the loan and prepare the closing statement, which outlines all the costs associated with the transaction.
At the closing table, you’ll meet with representatives from the title company, the lender, and sometimes the real estate agents. You’ll review and sign all the documents, including the deed, mortgage, and closing statement. The buyer will pay any remaining closing costs, and the seller will receive the proceeds from the sale.
After the closing, the title company will record the deed with the local county recorder’s office, officially transferring ownership to the buyer. They’ll also issue the title insurance policy, protecting the buyer from any future title defects.
Being prepared for the closing is key. Review all documents beforehand and ask questions if anything is unclear. Working with a reputable title company can help guide you through the process, ensuring a clear understanding of each step.
