Buying A House: The Closing
Once loan documents arrive at the title company, the escrow officer will prepare the documents and create a final closing statement. Most good escrow officers sent a copy of the estimated closing statement to both the buyer as well as the buyer’s agent.
Following is an estimated closing statement for a sales price of $298,000 with a $3,000 earnest money deposit:
Redwood Title Company
123 Jump St.
San Francisco, CA 94108
Property: 1234 McConnell Avenue File number: 4904-393217
Officer: John Jones
New Loan Number: 356297
Estimated Settlement Date:1/31/2012
Disbursement Date: (hasn’t happened)
Buyer: Rosie J. Smith, Howard M. Smith
Address: 121 Cherry St., San Francisco, CA 94105
Seller: Tim Crowder
Address: 235 Eastman Ln., Petaluma, CA 94952
Charge Description Borrower Charge Borrower Credit
Consideration $298,000
Deposits in escrow: $3000
Receipts No. 235-2678 on December 27, 2011 by Rosie and Howard Smith
Prorations:
County Tax 2/32012 to 7/1/2012 @ $2236.35/semi $1825.84
New Loan:
Lender: ABC Mortgage
New Loan To File: ABC Mortgage $290,445
Interest on new loan 02/02/2012 to 02/12012 @ $31/day ABC Mortg. $31.83
Origination charge ABC Mortgage $1295
Credit for rate chosen -$1100
Appraisal Fee ABC Mortgage $620
Mortgage insurance premium $2875.69
Appraisal Credit ABC Mortgage $490
Aggregate Adjustment -$127.80
County property taxes 1 month $310.42
Homeowners insurance 3 mo’s $191.58
Title/Escrow charges to:
Escrow Fee Redwood Title $1150
Notary fee Redwood Title $125
Alta Loan Policy Redwood Title $487
Owners Policy Redwood Title $1089
Record deed Redwood Title $16
Record deed of trust Redwood Title $37
Disbursements Paid to:
Homeowners insurance to Farmers Ins. $791.30
Cash (X From) ( To) Borrower $13,619.20
Totals $307,586.03 $307,586.03
After you have had an opportunity to review this document on your transaction, you can set the signing with the title company to sign final purchase loan papers. The signing can take place at the title company depending on convenience, in the comfort of your home, at the mortgage company or at the real estate office.
The majority of the loan papers that you will be signing pertain to discriminatory laws, fair housing, credit agencies and various forms of government disclosures. The most important considerations in a purchase transaction you want to pay close attention to the following:
- Purchase price
- loan amount
- earnest money considerations
- cash to close
- total house payment
- mortgage interest rate
As long as these items are accurate, signing the rest of the papers should be a breeze. Usually the notary or the actual escrow officer, depending on where you sign loan documents, will be able to answer any questions that you have. Additionally, you might want to ask your real estate agent to attend the signing with you. Having them there by your side during this huge financial transaction is always a good thing.
Take heed because now you are almost there to closing escrow on your home purchase.