The Closing of Escrow

The Closing of Escrow

A day or two prior to the closing of escrow, gather and review all of the paperwork related to your new home purchase. The contract, proof of title search and insurance, proof of homeowners and mortgage insurance, appraisal and inspection reports, and so on. You should take the opportunity on closing day to make any last minute changes to the transaction, so those documents might come in handy for reference.

A walk-through inspection of the home 24 hours before closing should be in your contract. You will want to do that to make sure everything is in order according to the written agreement. You have the right to request a delay in the closing if you find any major problems. You may also ask that the seller cover the necessary repairs by depositing money in an escrow account.

Your primary duties at the closing will be:

1. Signing legal documents.  If you have a lender, you will need to sign the agreement between you and that lender as well as the one between you and the seller. The buyer-seller agreement will legally transfer ownership of the home into your name. Make sure you read every document carefully before signing, and refrain from signing any forms with blank lines or spaces.

2. Paying closing costs and escrow items. Borrowing? If so, you will have two options regarding handling the fees associated with obtaining your mortgage and transferring property ownership. You will be allowed to add them to the principal balance of your loan, or you can pay higher interest rates and have your lender assume the cost. You might have to pay these out-of-pocket fees.

The settlement meeting will be conducted by the closing agent, who will make sure that all documents are signed and recorded, along with payment and distribution of closing fees and escrow payments. You can be sure that The Lesti Team will be there with you every step of the way.

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