The closing, or settlement, is the last step in getting your mortgage and actually becoming the owner of your new home.
You’ll probably see and sign more legal documents at your closing than at any other single event in your life. You’ll have to pay a number of different fees, too—all of which can make your closing confusing and a little overwhelming.
Closing (or settlement, they mean the same thing) is about all of that. It is the legal process of transferring ownership of a home from one person to another and generally the purchaser receives a loan to finance the home purchase.
"Closing" is really a whole process, with plenty of decisions that can save you money--or cost you money.
There are two separate issues that can make closing seem complicated—the number of documents and the costs involved. Let’s look at each separately.
Closing requires the review and approval of many documents with complex legal language. But behind that legal language is a straightforward agreement or certification. Generally, the documents confirm arrangements already agreed upon by you, your lender, and the seller.
To ensure there are no problems with your home or your loan, much must be done, often by specialists, all of whom are paid.
Keep in mind that you may negotiate who—you or the seller—pays for most of these fees. However, depending on the state, the seller or buyer may be required to pay specific fees for property transfer, so you should consult with your lender or real estate agent.