You’ve got all the important paperwork in place for your real estate settlement: the good-faith estimate, contract, title insurance, flood certification, proof of homeowners insurance, and mortgage insurance. The appraisals and inspections have been conducted. There’s been a walk-through of the property, and now, 24 hours later, you’re ready to close and be a new homeowner. Here’s what to expect as you move through the settlement process.
A closing agent will help facilitate the review and signing of the following vital documents:
- HUD-1 Settlement Statement: This provides a thorough list of all costs associated with the sale of a property, similar to a good-faith estimate, but solidified as an exact record of settlement expenses. The buyer has the right to review this document in comparison with the good-faith estimate 24 hours prior to closing and is granted the opportunity to resolve any problems identified. Both the buyer and seller sign the HUD-1.
- Final TILA Statement: Issued as a preliminary version after applying for a mortgage, the final version of this statement summarizes the cost of the buyer’s loan and APR and records any modifications made to the buyer’s rate between filing an application and closing.
- Mortgage Note: A written agreement to repay the mortgage, this note specifies the amount and conditions of the loan, as well as consequences to be issued in the event of failed payments.
- Mortgage or Deed of Trust: This paperwork safeguards the Mortgage Note, giving the lender a claim against the buyer if payments are not made.
- Certificate of Occupancy: For new construction, this legal document is mandatory in order for the buyer to move in to his or her recently-acquired home.
After reviewing and signing closing documents, the keys get turned over to the new owner and the property officially changes hands from seller to buyer!
The legal experts at Colony Title Associates provide real estate settlement services in Maryland, Virginia, and Delaware. We prepare the title insurance commitment, the Deed, settlement sheet, and in many cases, loan documents. Handling the closing process, Colony Title’s experienced professionals collect and disburse all funds to the appropriate parties, record all necessary documents including deeds, mortgages, and mortgage releases in the appropriate jurisdictions. It is our duty to simplify the home buying process for general consumers and real estate agents alike.
To learn more about our services, please contact the Maryland real estate insurance experts at Colony Title Associates by calling 410-884-1160 or visiting ColonyTitle.com today!