6 Steps to Selling Success!
Step 5: Closing
If you have a buyer and are close to closing, get a copy of the settlement statement prior to closing day. Carefully review all of the information with your MetroTex Member paying close attention to financial details. If you have questions about anything, talk to your REALTOR and get them cleared up as soon as possible so there are no surprises at the closing table.
Closing is a term used for the point in time at which the title to the property is transferred to the buyer and, generally, a mortgage (or "deed of trust") is given by the buyer/borrower to the lender. A title professional will search and examine the public records for information related to your home's title. This provides warnings of title flaws that must be dealt with before the property can change hands. For instance, the previous owner may have failed to pay local or state taxes. Or there may be an outstanding mortgage or judgment on the property. Title professionals work hard to see that such obligations are dealt with and resolve any issues they find well before you go to closing, if possible. If the sales contract calls for a prior mortgage to be paid off, the settlement agent will order payoff figures from the existing lender. If the buyer is assuming the loan, the settlement agent handles that as well.
Finally the settlement agent is ready to prepare the HUD-1 Settlement Statement. The HUD-1, as it is referred to, outlines all of the costs for both the buyer and seller associated with the closing. On closing day, the property will be transferred to the buyer. You will sign a number of documents that will be explained by your settlement agent.