If you are in the process of buying a home, you’re likely looking forward to closing day. This is the exciting moment when your purchase is finally made official. The seller will transfer the property title and ownership to you. You will sign several documents, pay for any lingering closing costs, and ultimately receive the keys to your new place.
If you’re curious about the home closing process and what to expect, check out the list of documents you can expect to sign on the day of your closing:
Mortgage Promissory Note
This note is your agreement to pay your mortgage loan according to the specifications within the document. It specifies the total amount you owe, the interest rate, your payment period, etc. You will also see where payments should go and what plan is in place should you fail to repay the debt.
Deed of Trust
While the mortgage promissory note is your agreement to pay the loan back, the deed of trust is a binding contract that gives the lender all rights to reclaim the house and property if you fail to make payments. If you hear your lender talk about the mortgage, this is the document they are likely mentioning.
Deed
The deed is what legally transfers ownership from the seller to you. You will have legal rights to your new property when you sign the deed.
Closing Disclosure
The closing disclosure shows how much is due on or by closing day. This includes the down payment and other closing costs that have not yet been addressed. Your lender will provide the closing disclosure to you before the closing day arrives. Be sure to review this document well and address anything that does not align with what you expected.
Initial Escrow Disclosure Statement
Your lender or bank will set up an escrow account with every home loan. You will feed money into this account through your monthly mortgage payment to cover expenses like property taxes and homeowners’ insurance premiums. The initial escrow disclosure statement is your acknowledgment and agreement to this escrow arrangement.
The Transfer Tax Declaration
Georgia imposes a real estate transfer tax, sometimes called a property transfer tax. You and the seller must sign the declaration to acknowledge the transfer tax payment. It’s the seller’s responsibility to provide payment, but buyers will often agree to cover the cost of the tax transfer.
Once everything is signed and finalized, the property is yours. As easy as it sounds, it’s wise to have a knowledgeable real estate lawyer on your side to ensure accuracy at the meeting. If you’re buying a house, speak with the team at Walker, Hulbert, Gray, & Moore for expert guidance throughout the process. 478-987-1415
Thank you for checking out our homebuying series! For a look at our previous 4 articles, follow the links below: