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Closing
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Escrow
An attorney or
title company will conduct the closing and make sure all the
preliminary detail work has been completed in time. These
companies are impartial and objective, hold the down payment,
oversee all the paperwork, and then distribute the money when
the terms of the sale have been met.
Title Insurance
Title insurance is
an aspect of home buying that many people have found confusing.
There are actually two types-lender's and owner's. What title
insurance will do is protect you, the buyer, from any claims
that may arise against the property you're buying. When you have
title insurance, you have a guarantee that once you've bought
it, you own it, or the title company is obligated to compensate
you for damages. Most lenders routinely insist on a title search
and require buyers to purchase title insurance to protect their
investment.
Closing Costs
You'll know in
advance what fees you're going to be expected to pay, above and
beyond the down payment. Your loan officer is obligated to
provide you a good faith estimate of these costs at the time of
your closing. Costs may include recording fees, other assorted
taxes, legal fees, title fees, pre-payment of property taxes and
homeowners insurance. You should check every fee in advance, and
if there's something you don't understand or don't think you
should have to pay, the time to question it is before the
closing.
Mortgage
Insurance
You may see a fee
for mortgage insurance on the list. That doesn't mean that if
you lose your job and are unable to make your payments, the
insurance company's going to send in those monthly checks for
you. Mortgage insurance will only pay the balance of your note
if you die or, in some cases, are permanently disabled. Some
lenders are making this insurance mandatory, especially if your
down payment is less than 20 percent.
Final
Walk-through
When you know
everything's been completed and the closing is going to take
place as scheduled, you should make an appointment with your
agent for a last-minute inspection of the property. Known as the
final walk-through, it takes place the day before or just before
the closing.
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