Closing day is the final step in the home-buying process, and your REALTOR can play a major role in helping everything go smoothly. While the details can vary depending on the state, closings in Indiana are typically handled in person, with the buyer and seller meeting together to complete the transaction.
At closing, two major things happen: the terms of the purchase agreement are officially carried out, and the buyer’s mortgage loan is finalized and funded. Closings are often held at a title company, attorney’s office, or lender’s office, though another agreed-upon location may also be used.
Several people may be present during the closing, including:
* The buyer and seller
* REALTORS or brokers representing each side
* Attorneys, if either party chooses to have one
* Representatives from the lender
* A representative from the title or insurance company
The meeting is usually guided by someone from the title company or lending institution, who will review the required paperwork and make sure everything is properly completed before funds and ownership are transferred.
One important part of the process is making sure documents are recorded in the correct order. For example, if the seller is paying off an existing mortgage and the buyer is taking out a new loan, the seller’s loan must be officially released before the buyer’s mortgage can be recorded.
As the buyer, you’ll likely sign a large number of documents. These may include:
* A settlement statement outlining your final costs and loan details
* Loan and mortgage documents
* Truth-in-Lending disclosures
* Tax and insurance paperwork
* Affidavits confirming your financial and employment status has not changed
* IRS forms related to mortgage interest deductions
Your closing costs may include items such as:
* Loan origination fees
* Appraisal and credit report fees
* Title and settlement fees
* Recording fees
* Survey costs
* Prepaid property taxes and homeowner’s insurance
* Interest owed from the closing date through the end of the month
You’ll also need to bring funds for your down payment and any remaining closing costs, typically in the form requested by the closing company.
Depending on the terms of your purchase agreement, you may receive the keys and take possession of the home immediately after closing, or at a later agreed-upon date.
It’s a busy day with plenty of paperwork, but it also marks the beginning of a new chapter. Take a moment to enjoy it—you officially own a home.