Home Closing Procedure

1. As the buyer (borrower), you have the right to choose a title insurance company,  your liaison with the lender.  The settlement officer at the title company reviews the lender’s packet with you to ensure the correct interest rate, type of loan (adjustable or fixed), pre-payment penalty, etc.  The title company also makes certain that the seller has clear title and the right to sell the house, as well as ensuring that there are no active liens on the property.
2. Be prepared at closing (loan settlement) which is the final meeting where you sign documents and take procession of the property.  Ask questions if you are uncertain of anything that is being explained.
3. One business day before the settlement, you have the right to inspect the HUD-1 Settlement Statement.  This statement itemizes the services provided to you and the fees charged to you and to the Seller which should be close to the Good Faith Estimate.  This form is filled out by the settlement agent who will conduct the settlement.  Be sure you have the name, address, and telephone number of the settlement agent if you wish to inspect the form prior to settlement.
4. A final walk-through of the property is usually conducted 24 hours before closing.  Your Agent should accompany you.  Check for repairs and verify that any items negotiated as part of the sales contract are still on the property.

View this video about the closing process and how to use the HUD-1 Settlement Statement and GFE to ensure that the loan you were offered closely matches the one you are signing at closing: Closing the Deal.