Closing or Settlement
After all the contingencies in the contract are removed/loan requirements are satisfied, it's time for the lender to send the closing package to the buyer's attorney/title company. The closing company will prepare the necessary closing paperwork and generate an official HUD-1 Settlement statement. This HUD 1 will be shared with the lender,seller's attorney, the seller, the agents and buyers to ensure accuracy and approval. The deed will be signed by the seller at a separate closing and forwarded to the buyer's closing office.
The final figure owned by the buyer will be either less or exactly what was quoted at loan application. If there are any discrepancies , it will be credited by the lender to the purchaser. This figure is payable to the closing attorney/title company. It may be wired to the title company's account. Or, the buyer can bring a certified check to the closing. At closing, the buyer or buyers will meet with the paralegal or attorney. The HUD-1 will be reviewed, signed and notarized. Likewise, the deed of trust and any applicable promissory note will be reviewed, signed and notarized.
Paperwork will confirm monthly payment amount, interest rate, first payment due date and details regarding escrow accounts for taxes and insurance. Likewise, an IRS form with a buyer's social security number will be signed. This is what alerts the IRS that you are a homeowner and can deduct certain portions of your payment on your taxes each year. If not previously wired, funds will be collected.
The Melton Team always strives to attend each closing with their buyers. When complete, the keys will be handed over to the new owners! Congratulations! In turn, the closing office forwards the applicable funds and papers to the mortgage company. The purchaser's lender will release the mortgage funds to the closing office. The following day, the closing office will record a notarized copy of the deed of trust at the applicable court house. Once this is completed, the same attorney will release all funds to their applicable parties to include paying off the previous owners' mortgage, proceeds to the seller, any contractors, the buyer's insurance company, and the real estate companies.