The closing is the end of weeks or even months of research and decision making. The closing is when everyone sits down at the table, and the transaction is completed! The closing could last less than an hour but may take longer, depending on the complexity of the transaction. The closing is normally conducted at the office of the buyer’s attorney, title company or lender. The attorney or lender will explain each document before you sign. The seller’s attorney may be present as well.
Two basic kinds of documents
If buying a home in Vermont was strictly a cash transaction, you would simply hand over the money and take care of minimal paperwork and receive the deed. More than likely, however, you are borrowing money for the home, which means that you are actually making two transactions -- acquiring the loan and buying the home.
As a borrower, you will sign a note promising to repay the loan and a mortgage pledging the house (or other collateral) as security for the note. You will also sign numerous other papers including acknowledgments, disclosures, surveys, certificates, etc. Be sure to read each document carefully. Many times you will have an opportunity to review documents prior to the closing, and your attorney will help to guide you. Ask questions if you do not understand anything. There are no dumb questions. Your attorney should also be present at the closing table to help explain all of the paperwork every step of the way.
As a homebuyer, you will present a cashier's check (or other good funds) to the seller, sign a document that itemizes closing costs (a HUD or settlement statement, which the lender will have discussed with you in advance), and pay your share of the closing costs. In return, you will receive a deed, transferring ownership rights to you.
At the end of the closing, you will receive copies of paperwork, and likely receive keys to the property. At that moment, the home will be yours. Occasionally, possession of the property will not occur after closing. For example, the seller may have negotiated with you for a few extra days to move or a rent back after closing, the loan cannot be immediately funded, or other concerns. But, in the majority of transactions, you will be the new owner of the property at the end of closing.
Contact Greentree Real Estate to learn more about buying a home in Vermont.