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What Happens on Settlement Day?

The settlement date (closing date) is the date when the buyer becomes the owner of the home.  This is typically 30 to 60 days from when the Seller and Buyer agreed to terms and signed a final Agreement of Sale. 

Depending on your state the closing is hosted by the mortgage lender’s attorney or the Seller’s attorney or a Title Company to handle the closing. The Seller and Buyer seldom have their own attorneys, but in the case where the seller’s attorney handles the closing, the buyer should have his or her own attorney.

At settlement the attorney/title company will:

  • Collect all moneys paid by or on behalf of the Buyer of the new home
    • Bank’s check for the new loan amount
    • Buyer’s check for the down payment to buy the home
    • Buyer’s earnest money deposit
  • Pay off any balance on the Seller’s mortgage loan
  • Pay outstanding taxes on the home plus all utility bills
  • Pay himself or herself and all other closing fees
  • Give all remaining moneys to the Seller
    • Pay off outstanding balance on the Seller’s current mortgage loan
    • Commissions to real estate agents
    • Closing costs
  • Transfer the deed to the home to the Buyer

February 8, 2011 - Posted by | Uncategorized | , ,

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