Closing on Your Home
What is a Real Estate “Closing”?
A “closing” is where you and your agent meet with some or all of the following individuals: the buyer, the buyer ’s agent, a representative from the lending institution and a representative from the title company, in order to transfer the property title to the buyer. The purchase agreement or contract the buyer signed describes the property, states the purchase price and terms, sets forth the method of payment, and usually names the 
date and place where the closing or actual transfer of the property title and keys will occur.
At closing, the buyer will be required to pay all fees and closing costs in the form of “guaranteed funds” such as a Cashier’s Check. The buyer's agent or escrow officer will notify the buyer of the exact amount at closing.
10 Days Before Closing
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What is an Escrow Account?
An escrow account is a neutral depository held by the buyer's lender for funds that will be used to pay expenses incurred by the property, such as taxes, assessments, property insurance, or mortgage insurance premiums which fall due in the future. The buyer will pay one-twelfth of the annual amount of these bills each month with your regular mortgage payment. When the bills fall due the lender pays them from the special account. At closing, it may be necessary to pay enough into the account to cover these amounts for several months so that funds will be available to pay the bills as they fall due.
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What it Title Insurance?
Title Insurance is a policy that protects a buyer against errors, omissions, or defects in the title of the property. A title insurance policy covers corrections for problems that did not show up during the title search or were missed by the examiner. It also protects a buyer against errors in public records. If title problems are found after closing, the policy will pay the buyer's legal fees if he must go to court to defend his deed. If the buyer loses the property, the insurance should pay him for the loss up to the amount of the policy.
In spite of these benefits, there are some circumstances that title insurance does not cover. A title insurance policy does not cover defects that occur after the buyer purchases the property. Policies often exclude problems with easements, mineral and air rights, and liens. The buyer should ask his attorney or closing agent for an explanation of all exclusions, and for a recommendation as to which items should be cleared up prior to closing. One does not have to buy title insurance if one purchase the property in cash. A mortgage lender will require a policy in its name to cover its interests. The lender may or may not require a buyer to buy a policy for your own protection. For more information click here.
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Contract Negotiation: Terms and Conditions
