What to Expect When Closing On Your New Home

The day is finally here. It's time to close on your new home. You will go through the paper work formality that means you are now the homeowner. Take a deep breath, this should be an exciting time and our goal is to have a happy and fun closing.  

Approximately 24 hours before your closing you should have a copy of the HUD settlement statement more commonly called closing statement in our market. This will give you time to ask questions and understand the statement and confirm numbers are correct. Details on Settlement statement can be found at this site. http://www.hud-1.info/hud-1-videos/hud-1-hud-1-settlement-statement-hars-consumer-knowledge-series/

This closing statement is a form that reflects everything that has been agreed to on the contract. It will be divided into two sections. The right column will have the sellers information and the left will be the buyers side. Once this is verified and any corrections made, you can feel comfortable that the closing will go smoothly.

Some things that can be missed on the closing statement, and that you need to ask to see, would be things the seller is paying for above closing cost (example Home Warranty). They are most likely on the form but sometimes locating them is a challenge. Visit this site for a sample of what a HUD settlement statement looks like, http://www.hud.gov/offices/adm/hudclips/forms/files/1.pdf.

Before closing it is a good to learn a little about title insurance, (http://www.homeclosing101.org/whyneed.cfm).  This is a website that explains title insurance and the benefits. I recommend it be purchased on every closing. It is a one time payment made at closing that you will most likely never need. However, when a title problem occurs and ownership of the property is challenged, you will be grateful to be able to turn it over to your title insurance company.

If you are a person who will want to read every document, please ask the attorney to prepare in advance for you. It is very stressful to try to read these documents with all parties waiting for you to finish. If you are not a person who reads every document then make sure you understand what you are signing. Check to make sure your loan has the terms you thought it did and that the interest rate is what you were quoted.

Now the fun begins. You will need your driver's license or a government issued ID with a photograph. In some cases you may need a second form so be prepared. You will also need a check just in case funds required are more than the original closing statement. Most closing attorneys require you to wire funds needed to close. Check to see if they will take a certified check or if you need to wire the down payment.

It is time for you to meet the other party and sign, sign and sign. Let your hands do their workout and begin signing your life away. You will sign about eight copies of the HUD statement. This is a document you will want to make sure you put in a safe place where you can find it at tax time. Depending on your loan type, you should be through signing, in under an hour.

Once you have finished signing you are almost there. The attorney will send required documents to lender and they will issue what is called a funding number. Once that is done you can say you are homeowners.

While waiting for funding number which can take as little as five minutes or longer than 30 minutes. Do not panic it is a common thing to wait for this for an extended period.

This is the time to exchange information with sellers. If repairs were required you will have checked to make sure they were done at the walk through before closing. You can now review receipts, if work was done, get confirmation of termite bond and most importantly pick up the keys to your new home.

The attorney will then hand out checks to sellers and agents and the buyers can celebrate. At my closings a hug is required to celebrate the very exciting process that allows you to live the American dream.

Please feel free to email Nancy@Minor.net for any questions you may have about the closing process. If you need a home so you can get a hug at closing call 404-955-7653 (404-955-SOLD)

New on the market this week is 6154 Poplar Bluff Circle in Peachtree Corners. This home is priced at $360,000.

Open House Sunday 2 to 4 at 4410 River Bottom Drive in Neely Farm. This home is offered at $900,000.

Editor's note: Nancy Minor is a Realtor with . Her office is located in Peachtree Corners.