What Happens at the Closing or Settlement?
This is the time when the buyers, sellers, real estate agents and the lender's representative, meet to sign the final papers to transfer the title from one owner to the next. At this time the buyer brings a check for the cash down payment and closing expenses, the bank brings the check for the amount of the loan, and the seller brings the keys to the house. The seller signs the title (or deed) over to the buyer. Other documents relative to Federal law are signed by both the buyers and sellers, and a settlement sheet is drawn up so that all parties understand their costs. If a loan is involved, there will be several papers relating to the loan to be signed by the purchasers. All costs will be shown on the Settlement Statement. This form is furnished to give you a written statement of your actual settlement costs. If possible, I will review the settlement statement and closing procedures with you prior to closing. Typically, when the you leave the table, you will have the keys to the house, you will have signed the mortgage and you can take possession of your new home!
WHO PAYS FOR WHAT? Many of these items are negotiable and one party or another may pay them.
| ITEM |
PURCHASER |
SELLER |
| Down Payment |
X |
|
| Deposit |
X |
|
| Discount Points |
X |
|
| Origination Fee |
Negotiable |
|
| VA Funding Fee * |
X |
|
| Loan Application Fee |
Negotiable |
|
| Appraisal Fee |
Negotiable |
|
| Survey Fee |
Negotialble |
|
| Title Search/Abstract |
Negotiable |
|
| Lender's Title Insurance |
1/2 Buyer |
1/2 Seller |
| Attorney Fees |
Negotiable |
|
| Recording Fees |
Negotiable |
|
| Tax Certificates |
Negotiable |
|
| Homeowners' Warranty Plan |
Negotiable |
|
| Real Estate Commission |
Negotiable |
Typically Seller |
| Termite Inspection |
|
X |
| Underwriting Fee** |
Negotiable |
|
| Tax Service Fee *** |
Negotiable |
|
* In VA sales, the VA Funding Fee can be paid by the purchaser, paid by the seller if he agrees, or the purchaser can include the fee in the mortgage amount.
** In FHA and VA sales the underwriting fee must be paid by the seller
*** In FHA and VA sales, the tax service fee must be paid for by the seller.
Reminder: This table represents costs NORMALLY paid by either party. Almost anything is possible, provided all parties agree and it is within the law and complies with the mortgage company's underwriting guidelines.
Fair Housing and the Law
It is very simple. RE/MAX Huntsville, and their associates do not discriminate in any way involving the listing and/or sale of real estate. Prospective purchasers who are financially qualified to look at properties will be shown properties regardless of race, color, religion, sex, age, familial status, handicap, etc.
I hope the information in this booklet has been helpful to you. Buying a home is an exciting and often scary experience. I will work hard to make sure that you not only find the home you want, but that you have an enjoyable time.
We have covered a great deal of material in this booklet. If you have any questions on any of the things covered, or any other real estate matters, please don't hesitate to call me at 256-508-0211.