Checklist for Real Estate Closings

Save

From the time a contract is first written until the day of closing often seems like an eternity. Getting the required homeowner’s policy, home inspection, appraisals as well as taking care of any other contingency is all part of the real estate buying and selling process. Real estate closings have requirements that must be met before the actual transfer of ownership.

Earnest Money

  • When a contact agreement is reached, earnest money may be part of the agreement. Although it is not a requirement, if earnest money is offered from the buyer, it is held by either the listing or selling broker in an escrow account. It is the responsibility of the real estate agent to bring the earnest money with her to the closing so it is applied appropriately.

Settlement Statement

  • The Department of Housing and Urban Development, known as HUD, requires that a settlement statement or HUD-1 be given to all parties involved in the closing. The settlement statement shows all money involved in the transaction and how it is being applied. The Real Estate Settlement Procedures Act requires that each party receives a copy of the settlement statement at least one day prior to closing. Both the buyer and seller as well as the closing official are required to sign the statement at closing.

Closing Documents

  • The lender provides the attorney or closing official with a list of the proper closing documents. These include the note, tile search, transfer deed and any other document specifically required by the lender, attorney or any other party involved.

Down Payment

  • If the buyer is required to pay a down payment, it must be presented at closing. The amount of the down payment is based on a percentage of the purchase price and is stated in the loan agreement between the lender and buyer. For a conventional loan, one should be prepared to pay 10 percent down, whereas for a Federal Housing Administration (FHA) loan, the buyer pays three and one half percent down. A down payment should be offered in the form of a cashier’s check or certified check but never as cash.

References

  • Photo Credit Andy Dean/Hemera/Getty Images
Promoted By Zergnet

Comments

Resources

You May Also Like

  • Explanation of Loan Closing Documents

    The size and number of documents needed to close a loan can seem overwhelming, especially if you have never seen them before....

  • Mortgage Post Closing Checklist

    Mortgage loans have an extraordinary amount of paperwork that lenders are required to retain for compliance and legal purposes. Checklists are used...

  • Florida Real Estate Closing Requirements

    A real estate closing in Florida is far from a quick or inexpensive process. You'll have to sign several documents, and you'll...

  • Real Estate Closing Laws

    Real estate closing involves the transfer of title in exchange for money or financing, according to US Legal Definitions.com. Real estate closing...

  • Real Estate Transaction Checklist

    Navigating a real estate transaction can be a stressful and time-consuming experience. You have to stay in touch with a number of...

Related Searches

M
Is DIY in your DNA? Become part of our maker community.
Submit Your Work!