Other Terminologies Used In The Closing Process
Wednesday, October 8th, 2008
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Settlement Statement or Closing Settlement gives a list of fees that were paid at closing which includes real estate commissions and escrow amounts. Closing Documentation is paperwork that needs to be completed before closing such as title search, to be sure that the title is indeed clean and without any encumbrance and title insurance to protect both the buyer and the seller from any oversight and an application for homeowner’s insurance, which is important in qualifying for a mortgage. Closing costs are expenses incurred such as loan origination fee, taxes, cost of a credit report, lender’s inspection fee and other fees pertinent to the closing process. Final Arrangement. Before the deal is finally closed and you take possession, the buyer must make an arrangement for the utility services and first mortgage payment. Settlement is the buyer’s payment of the balance of the property’s purchase price and the transfer of title. It happens on the date of possession as indicated in the contract.