First Time Homebuyer Seminars ..... The Big Day!!! ... The Closing

First Time Homebuyer Seminars ..... The Big Day!!! ... The Closing.  Once the Attorney and the Buyer(s) have completed all the conditions listed on the Commitment Letter, the Closing Department will give the Attorney a "Clear To Close".  These are the words everyone has been waiting to hear during this whole process.  These are words  needed for The Big Day to happen, The Closing.   Now a firm Closing Date agreeable to both Buyer(s) and Seller(s) can finally be set..

Closing Date -  Many times this date is different from the date initially written in the Sales Contract. There could be various reasons for why the Closing Date may be different.  The Buyer(s) or Seller(s) might wish to close earlier, or the Seller(s) isn't ready to move yet.  Another reason would be if the Buyer(s) had trouble meeting the conditions on the Commitment Letter and needed more time.  Regardless of the date that is set, it needs be set within the "Rate Lock Period", if it is not, the Buyer(s) or the Seller(s) will have to incur an additional expense to extend the Rate Lock Period.

Day Of The Closing - Everything is set the Buyer(s) has met all the conditions, the Attorney has prepared all of the necessary documents, and the Seller(s) has moved everything out of the house.  All that remains is for:

• The Lender To Wire The Money - The Closing Department will wire the necessary funds to the Attorney's Escrow Account, so the Attorney can cut all of the checks needed for the Closing.
• Walk-Through - Sometimes this is done on the day before the Closing, but most of the time it is done just before the Buyer(s) come to the Closing. The "Walk-Through" involves the Buyer(s) and the Realtor/Agent taking a physical walk through the property, and inspecting it to make sure everything is as they expected it to be. If it is great, if it isn't then those issues will be discussed at the Closing, and an agreement on how to remedy the situation will have to be reached before the Closing can be finalized.

Signing Documents - Here in Connecticut generally the Buyer(s) and the Realtor/Agent head to the Attorney's office for the Closing after they have done the Walk-Through.  Once they have arrived the signing begins.  All documents are explained by the Attorney, and signed by usually very nervous Buyer(s). This is most likely the most money the Buyer(s) have ever spent, and there is usually a very nervous excitement in the air.  I try to attend my Closings, not because I serve any useful function there, except to offer support to my Borrowers, and their Realtor/Agent.  But if there should be a question in regards to the Loan which the Attorney is uncertain about, I can clarify it, as well as contact the proper people if needed.  Some of the more important documents the Buyer(s) will sign are: 

• Settlement Statement (HUD-1) - The HUD-1 is basically a financial statement which contains all the costs and credits both Buyer(s) and Seller(s) will incur or receive on the day of the Closing. For me this is the most important document both Buyer(s) and Seller(s) will sign on the day of the Closing. I tell the Buyer(s) at these Seminars that it is very important they look at every figure carefully and make sure it is what they expected.  If it isn't they need to ask question until they are satisfied with the answers. Here in Connecticut the Buyer(s) and Seller(s) will sign 6 - 7 original copies of the HUD-1 depending on the Attorney.
• Truth-In-Lending Statement - The Buyer(s) will also sign a new Truth-In-Lending Statement, which has been adjusted to reflect the final costs.
• The Mortgage - This document is the legal device used to secure the property. It pledges the title of the property as security for the Loan. This document is several pages long, and will stipulate what the obligations of the Buyer(s) are, and what will happen if they default on the Loan.
• The Note - Is the written promise to repay the amount borrowed to the holder of the Note along with interest. It will state the amount of the debt and interest rate. Once the Buyer(s) signs this document they are personally responsible to repay the amount stated on the Note. The Note contains a lot of the same terms and conditions that were also stated in "The Mortgage". They are so similar that many times Buyer(s) think they are signing the same document, but the Note is different the Mortgage, and carries different obligations.

Here in Connecticut the Seller(s) also attend the Closing along with the Buyer(s).  So as the Buyer(s) are completing the signing of the above documents and others, the Seller(s), their Attorney, and usually their Realtor/Agent arrive.  The Seller(s) will sign the HUD-1's along with other documents pertain to them.  Once everything has been signed by the Buyer(s) and Seller(s) their only remains three things to happen.

• Checks- The Attorney distributes the check to the Seller(s), and the two Realtors/Agents if they are present.
• Keys - The Buyer(s) receive the much awaited "Keys", and are now the proud owners of the house of their dreams.
• Recording The Deed - Even though everything has been signed and keys have been given to the Buyer(s), one more thing still remains to be done.  The Attorney now needs to formally record the new Deed onto the Land Records, at the Town Clerks Office.
  

This concludes what I cover in my "First Time Homebuyer Seminars". I hope it will prove useful to those who have taken the time to read all of the Posts I have written in this series.  And that this series of blog has given others who are planning on doing their own "First Time Homebuyer Seminar, a better idea of how to go about conducting one.  If any Buyer(s) have read these blogs, I hope it will better prepare them for what they will encounter along their journey to purchasing their first dream home.  

Previous Blogs In This Series:

• First Time Homebuyer Seminar Series
• First Time Homebuyer Seminar ...... Opening Questions
• First Time Homebuyer Seminars ..... Pre-Approval Process
• First Time Homebuyer Seminars ..... Choosing A Realtor
• First Time Homebuyer Seminars ..... Shopping For A House
• First Time Homebuyer Seminars ..... Applying For A Mortgage
• First Time Homebuyer seminars ...... Processing & Underwriting The Loan
• First Time Homebuyer Seminars ..... Preparing For The Closing

 

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com