The closing takes place during a meeting that includes the buyer, the buyer’s agent, the seller, the seller’s agent, and a closing agent. The closing agent is either an attorney or a representative from the title company who manages the ownership paperwork.
Through the course of the closing, several documents are reviewed and signed. Once all of the costs due at closing have been paid and the paperwork has been signed, you can collect your keys and get ready to move into your new house.
What are closing costs?
As part of your mortgage application you will receive a Good Faith Estimate (GFE) showing your potential closing costs. Some closing costs on a house can be rolled into the mortgage loan.
Who pays closing the costs?
Both the buyer and seller usually take part in pay closing costs. However in certain situations the buyer may be able to negotiate an agreement in which the seller pays a larger portion, or all of the closing costs.
Closing costs can include:
- An origination fee
- Discount point(s)
- An appraisal fee
- Credit report
- Title search
- Recording fees
How much are closing costs?
Closing costs typically amount to two to five percent of the purchase price but they can vary depending on your lender, location and property. Since closing costs depend on the purchase price, they are an important consideration when working with your real estate agent to decide how much to offer on a house.
As part of the mortgage application process you will receive a Good Faith Estimate (GFE) that indicates your potential closing costs. By law, an itemized list of closing costs must be provided to you within three business days of your mortgage application, and final closing costs should reasonably reflect the GFE. Your lender will also provide a HUD-1 settlement statement outlining your closing costs within a day of your closing.
How long does it to take to close on a house?
Many factors go into determining how long the closing process is likely to take; it depends primarily on your lender. You should receive an estimated closing date on your purchase agreement. The type of mortgage loan can also impact how long it takes to close on a house. FHA loans often take a little longer than conventional loans. Make sure to check in with your real estate agent for regular updates on how the timeline is coming on the closing of your house.