First Time Home Buying 101: The Closing

Well, you have offered to purchase the home and your offer has been accepted! Yeah! The house passed the home inspection with flying colors!

However, the work is not over yet....now it is up to your mortgage broker to secure the loan you need. Now your mortgage broker knows what house and how much you are paying for it. He/she will now search for the best "program" to fit your needs at the lowest interest rate. This will require all the "conditions" in your folder (bank statements, etc.,) submitted to the lender. He/she will order an appraisal of the property and anything else the "lender" asks.

The lender (and there are far fewer of them than in the past) will want to be assured that you will be able to afford to pay for the property that you are buying. They also want to know that the property is worth the asking price (in case they end up selling it along with the thousands of foreclosures they already have!) Don't worry you will be fine!

Let's assume that everything has been completed. Your loan is approved! Your mortgage broker has spent the time to explain what the terms of the loan are and what your payments will be.

Closing has been set up at a title company or with a real estate lawyer. Let's assume you are using a title company. They have assured that you are receiving the property "free and clear" prior to your purchase. They also provide a detailed statement of all monies in the transaction. When all the documents are in place, the sellers, either or real estate agent or mortgage broker (possibly both) will accompany you to the closing. The seller has an easier day, they just sign off on the title to the property and leave.

The title company will explain all the documents to you before your sign each one. There are a lot of them....expect to have a very tired writing hand! The reason it is really nice to have your agents with you, if by chance, there is an error in the paperwork, they can catch it here. Don't worry, if there is an error, it probably something simple like whether or not you "checked the box" to have your insurance and taxes included in your monthly mortgage payment. Sometimes, a lender will require that you do (so they know the payments are being made). Other, times it's your choice.

• You have signed the all the documents.
• You recieve a complete package of all the documents for your records.
• You are given the keys! You are a homeowner....go celebrate!