home closing smOnce your financing has been secured and you have completed all of the necessary preliminary steps, you are ready to close on your new home.

Closing is the formal transfer of ownership of the property - the point when you actually take possession of your home. At closing the actual transaction takes place. Your lender pays the seller the agreed purchase price, and you can officially move in.

Depending on where you are located and the type of property you are purchasing, closing costs and procedures vary depending greatly. In some states, the process is transacted by a third party that is selected by both the buyer and seller. In other states title companies or attorneys oversee the process.

Although the process varies, here is a basic checklist that will help steer you through it:

Set a closing date

  • Make sure the date gives you enough time to get ready for your move.
  • If you currently rent an apartment or house, think about whether the close is near enough to the end of your lease so you won't pay unnecessary rent

Choose a closing agent

  • A third party agent is needed to prepare the required documents and perform the transaction. An attorney, title company or closing agent can do the job.

Obtain title insurance

  • Title insurance is required on just about all mortgages, including both purchases and refinancing loans.
  • A title company will review the history of ownership on your new home to make sure that there are no claims on the property. Title insurance is needed when you close on a home because it covers you in case there is a title dispute.
  • This task of obtaining title insurance is not the buyer's responsibility; your closing agent should coordinate this with your lender.

Obtain homeowner's insurance

  • Most mortgage companies require homeowners insurance. This type of insurance protects your home and your possessions from disasters and theft. Depending upon where you live, additional hazard or flood insurance may also be needed.

Make a Final Walk-Through

  • This is your last chance to inspect your new home and to make sure that the seller has made all the repairs and met the conditions indicated in the purchase agreement.

Finalize all details

  • Before the closing, you'll want to go over all details of the transaction with your closing agent. Important items include finding out what method of payment that you will need to use to pay the seller at closing and making sure that you have all the necessary documents ready. You will also need to find out the exact location and time of the closing at this point.

Perform the Transaction

  • On the day of the closing, you will meet your realtor, the seller, the seller's realtor and the third party agent performing the transaction at a specified location. At this point your closing agent will lead you and the seller through the transaction.

    You will be required to sign all documents making the sale of the property an official transaction. You will also sign all the official documents pertaining to the mortgage itself.

    As the buyer/borrower, you will be responsible to pay the amount of money needed to execute the transaction covering your down payment and closing costs minus any earnest money that you supplied during the bidding process.

During the closing process Evolve's closing department will perform the following steps:
  • Verify the closing time and date
  • Evaluate the title insurance policy
  • Conduct a search on the real estate taxes due on the property
  • Evaluate the home owner's policy
  • Prepare formal documents for closing