You're in the home stretch: You and the seller have come to an agreement, and now you have to make it legal. Your real estate agent will draft a sales contract, and you'll fill out a formal loan application with the lender who earlier preapproved you for a mortgage. Your sales contract will include legal descriptions of the house and its location, any mortgage contingencies, deposits, closing costs, termite-inspection costs, warranties, home-inspection contingencies, home insurance and finally the possession date.
After everybody signs on the dotted line, the next step is the final walk-through. If the seller was living in the house, this takes place once she is gone and the house is ready for you to move into. You will probably do the final walk-through with your real estate agent and a home inspector. Bring your sales contract along to make sure everything that was supposed to be fixed did indeed get fixed. If it isn't, this is the time to legally get the seller to take care of it. You can't close on the house until all of these details are taken care of.
Now you sit down with a closing attorney for the closing. Who can act as a closing attorney varies somewhat from state to state. One thing that is consistent is that the closing attorney has to be approved by your lender. For good measure, you should bring along your real estate agent. This is when everyone will sign the settlement statement and put the title of the house in your name. This is also when you will pay the closing costs. You'll have to present all legal documents you have been gathering up to this point, including your homeowner's insurance policy and your loan papers. Once everything has been signed and you have handed over your certified check, you will finally be presented with the keys to your new home.
