This week we received another question from a viewer: “I have a closing coming up and I am buying a home. What should I expect on the day of closing?”
First, you will have a final walkthrough with your real estate agent on the day of the closing. You want to make sure that the seller has completely moved out. Check to see there is no damage. If there were items that the seller might have promised to take care of, you will have a chance to confirm that the seller actually took care of them.
Next, you will come to our office for the actual closing. The closing is a formal meeting where you sign all the paperwork.This Includes the settlement statement. The settlement statement is the summary of the costs, expenses and adjustments related to the purchase.
If you are financing a home, you will sign something known as a promissory note. This is a written agreement between you and your lender, where the buyer promises to pay the lender. So, the Lender agrees to lend a certain amount of money and the buyer agrees to pay that amount back with interest.
You will then sign a mortgage. The deed from the seller grants the property to you. The buyer grants a mortgage to the lender which grants the lender the right to foreclose in the event the buyer fails to repay the loan. This is said to “secure” the note as it provides the lender with security. The lender is better able to recoup their loan by foreclosing and auctioning the property rather than by simply suing the borrower.
Next, you’ll sign many other documents, that are just as important for both you and your lender. After you sign everything, we will then record those documents with the County’s Registry of Deeds.
Once we’ve ensured that nothing has changed since the title exam was initially done we will record all the documents. Once completed, you then officially own that property!
If you would like more information about a closing, contact Stiles Law at (781) 319-1900.
Copyright © 2019 Stiles Law, All rights reserved. Stiles Law is a Massachusetts licensed law firm and all content is based on Massachusetts law. The information presented above is meant to be used for general informational purposes and it should not be construed as legal advice or legal opinion on any specific facts.