If you've missed the first steps in our Home Buying Series, view them here.

So you have had all your inspections and negotiated all repairs, now what? It's time to talk about closing. What is a closing? The “Closing” is just a term used in the Real Estate industry as the process of transferring the title of a property to the buyer and also providing the lender with a mortgage (also known as a “Deed of Trust”) from the buyer/borrower. In South Carolina, all closings are required to be conducted by a lawyer.

Making it to the Closing Table

Once repairs have been completed by the seller you are pretty much home free to the closing of your new home. Your lender may have to finalize some documents and numbers leading up to closing but they should stay in touch with you if they need anything. Your agent should setup a final walk-through of the home a day or two before closing where you and your agent will ensure all repairs have been completed as agreed and that the home is in move-in ready shape.

At closing you will do two main things, sign legal documents and pay closing costs. The legal documents primarily consist of the agreement between you and the seller in regards to ownership, as well as documents between you and your lender that pertain to your mortgage. A little hint…take your time when signing these documents. I encourage you to read them. It’s YOUR closing so make sure YOU are totally comfortable with what you’re signing and do not be afraid to ask questions!

Included in your closing package is a main document called a Closing Disclosure (CD). The CD is a detailed list of all costs related to the sale of the home. Typically you and your agent will receive a copy of the CD prior to closing so you can look it over and make sure that everything is correct. This is an important document because it lists everything that you and the seller are paying for. You want to make sure that everything the seller agreed to pay for is included in the CD and vice versa.

The second document of importance is the Mortgage note. This document is your promise to the lender that you will repay the mortgage. It will show you the full amortization schedule and how many payments you will be making during the course of your loan. The mortgage note also lets you know what the lender can do if you fail to make your payments (Usually, this is when someone at the closing table will make a joke about giving up a first born or signing their life away).

If you have closing costs to pay (fees typically attached to borrowers who obtain a mortgage), then you will pay them at the closing. Most buyers will bring a cashiers check or wire the money directly to the closing attorney (the attorney should make this clear prior to closing). Make sure to contact your lender to get the exact amount that you will need at closing. Just to be absolutely sure, bring a personal check with you just in case there is a slight variation.

There will be plenty for you to sign at closing but the end result will be you receiving the keys to your new home and being able to move in! 

This concludes our "Home Buying Series." We encourage you to reach Like us on Facebook and Follow us on the other major social networks to see upcoming events and announcements.