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9. Closing On The Home
"Closing" refers to the meeting where
ownership of the property is legally transferred to the buyer.
It is a formal meeting in which most parties involved in the
buying/selling process will attend. Closing procedures are
usually held at the title company's office or lawyer's office.
Your closing officer coordinates the document signing and the
collection and disbursement of funds. Your agent will generally
be present at your closing to read the documents on your behalf,
answer any questions, or help to resolve any last minute or
unexpected details that may come up.
In order for the closing to go
smoothly, each party involved should bring the necessary
documentation and be prepared to pay any related fees (closing
costs). There may be more than one form of acceptable
payment for your closing costs so ask the closing officer which
form of payment will be required and to whom it should be made
out. Closing costs will generally total an amount equal to 2 to
3 percent of the total loan value not including down payment and
the buyer's escrow account.
Sellers sometimes pay for a portion or
all of the closing costs, depending on local market conditions,
terms of the purchase contract, and the seller's cash and timing
considerations. Any such concessions should be
acknowledged in writing. Most lenders will allow a credit from
the seller to the buyer for the non-recurring closing costs.
However, they usually won't allow a credit that reduces the
amount of the buyer's down payment or any of the buyer's
recurring costs, such as expenses for fire insurance premiums,
PMI, or property taxes.
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