The Closing Process

The buyer will receive:

• Earnest money deposit

The buyer pays:

• One-half of escrow or legal fees paid to the attorney or escrow company for managing the closing
• Document preparation fees
• Recording and notary fees
• Title search and title insurance
• Local transfer taxes, if any
• Repairs or inspections the buyer has agreed to pay for
• Loan fees
• Appraisal fees
• Credit report fees

The closing process is the final step in the purchase of your new home. Closing is coordinated between your lender, closing agent, and title company.

Your earnest money deposit displays your sincere intention to purchase the property while your loan is being processed by your lender. This earnest money deposit is then credited toward the purchase price of the home once your loan has been approved and the down payment is made.

The seller's purchase and sales agreement will be reviewed by the closing agent. At the same time, a title search is conducted to determine the accuracy of the title, if there are any liens against the home, and whether or not the title is sound and insurable.

The closing documents are prepared and the closing agent oversees the signing between you and the seller. When your loan has been approved and financing is verified, the signed closing documents are handed over to the lender.

The lender accounts for all money, and forwards funds to the closing agent. The transaction is closed and recorded in the appropriate public records, and the title changes hands and funds are dispersed.

Congratulations, you just purchased your home!