Purchasing a piece of real estate, whether a residential property where you plan to live for years, or a commercial property where you hope to build your business, is likely to be one of the single largest purchases you make in your lifetime. You want to be sure that the investment is sound and that the transaction is entirely fair and legal. The settlement, or closing, is the final step in a real estate purchase. In many ways it can be the most important. Read on to learn more about what happens at a real estate closing, and contact an experienced Maryland settlement company to handle your real estate purchase.
Key steps prior to settlement
Prior to closing on your home or commercial property, your title company will conduct a search on the title of your property. This search, when conducted thoroughly, will help you learn of any complications with the title that could present legal issues for you down the road if not addressed prior to closing. Purchasing title insurance is an additional safeguard against future disputes caused by claims to ownership or of liens against your home. Under federal law, the buyer is the party who selects the title or settlement company to oversee the closing. Choosing a settlement company you can trust will help you feel confident in the transaction and in the soundness of your title.
You’ll also receive a closing disclosure several days before you close on your mortgage loan. This document will outline the terms of your loan and how much you can expect to pay per month, as well as all the fees and costs entailed in your closing, commonly known as “closing costs.” Your lender is required to provide the closing disclosure at least three days before you close on your loan. Receiving this document in advance provides you with the opportunity to be sure you understand it, and that you get to ask any questions you may have after reading it.
What happens at the closing
The settlement process itself is the straightforward culmination of weeks of negotiation, inspection, and applications. The most important thing you’ll do at a real estate closing is make your purchase official by signing documents—many, many documents. You’ll need to bring official identification to ensure that the documents are officially notarized. You’ll also need to provide a cashier’s check or to have wired the funds that make up the remaining portion of your down payment and closing costs. The seller will sign the deed transferring ownership of the home to you. You’ll also sign both a note, describing the terms of your mortgage, and a deed of trust, the document that establishes the house as collateral for your mortgage.
If you are searching for an experienced and trustworthy attorney to assist with your Maryland real estate closing, contact the Evans Law for a consultation, at 401-626-6009.