Closing day is the day when the keys are in your hands and the home offiially becomes yours.  It is usually 30 days or more after the contract has been signed.  Your contract will typically reflect an anticipated closing date.

At this time the closing agent or attorney delivers a closing statement or HUD settlement statement to the purchaser and seller. In North Carolina, attorneys are required for real estate closings while other states allow title companies to perform this function.  The closing agent will ask the purchaser to sign the promissory note, bond or other evidence of indebtness, promising to repay the the purchase money loan as well as a security instrument (mortgage) which makes the property the security for the loan.

Be sure you understand what you are signing. If you do not have a lawyer, the closing agent will help you with the legal terms. Don't be afraid to ask questions.

The big moment comes when the closing agent asks the seller to execute a deed to convey to the purchase "title" to the property.  This means that you own the property!

When the documents are in order, you will pay the balance of the down payment, if any, and your share of the settlement costs.  After closing, the closing agent will record the deed and mortgage in the local property records.  When recorded, the deed will be mailed to you.  The mortgage remains on record as a lien or claim against the home until your loan has been paid off.

The promissory note that you will sign at the closing is a negotiable instrument.  Your lender may sell, assign or transfer it to another investor without prior notice to you.  Such a sale would transfer the lender's right to repayment of the loan and you might be advised of a change in the procedures to be followed in making your loan payments.  Your rights and obligations remain unchanged, as are those of the loan holder.

At closing, you will also receive other important papers for your files.  Items like the builder's warranty (if you are buying a newly constructed house), receipts for the payments you make, a copy of the survey (if required) showing the boundaries of your property, and your copy of the closing statement are some of these. Receiving title insurance and having an owner's title policy gives you personal protection on your property.

Your closing statement or "HUD" will show the amounts you owe for the down payment, if any, and for other closing costs, as well as amounts you have already paid. We contact you before closing.  Normally, the sellers, their agent, your agent and your loan officer attend the closing to insure you have no questions.

If you have questions about title insurance in North Carolina call Kaety -- (919)459-1332

If you questions about mortgages in North Carolina call Steve -- (919)459-1313