Buying a home is a complicated process, from perusing potential properties to finishing off all the necessary paperwork required for homeownership. Today, at Colony Title, we’d like to spend some time clarifying how the closing process works.
Closing simply refers to the point in time when the property title is transferred to the buyer and when a mortgage is given to either the buyer or borrower to the lender.
Of course, before putting a contract on a house, you should be supplied with information about the costs associated with closing. If you’re applying for a loan, the lender has three days from the submission of your application to furnish a Good Faith Estimate of your loan costs; this assures you will encounter no shocking details about the cost of your investment. At the same time, be on the lookout for a booklet called “Buying your Home,” which offers the basics on the settlement process to help you make sure everything runs smoothly and as expected.
When your sales contract has been accepted by the seller, the process of closing commences, and a settlement agent will help you to prepare your documents and deposit your money into an escrow account where the funds will be stored until the time of closing.
At that point in time, the settlement agent will ask for preliminary title work, which the professionals at Colony Title can gather for you, searching and examining public records for information pertinent to your home-to-be’s title. This will reveal any title flaws that need to be taken care of before the property switches ownership from the seller to you. We will help you to make sure all title issues are settled before you go into closing.
Before all can be said and done, the settlement agent must prepare the HUD-1 Settlement Statement, which details the costs that accompany closing for both the buyer and seller.
Once this document has been completed and the final paperwork signed, the property will officially be transferred to you – the new homeowner – and you can turn the key to your new place.
If you have questions, the Maryland real estate insurance experts at Colony Title Associates can be reached by calling 410 884-1160 or visit ColonyTitle.com today!
About Colony Title Associates:
Founded in 1995, Colony Title Group handles in excess of 2000 real estate closings per year in the central Maryland area. The founder Tee Tillman has over 23 years experience in the title and real estate law fields. Colony handles closings for several lenders, including banks, credit unions and mortgage brokers. Colony is the preferred choice for many real estate brokers in the area.
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