Getting Ready for Closing

• The seller receives the price of the home and pays off any existing mortgage loan (unless the buyer is assuming the loan);
• The listing and sales agent(s) receive any commission earned for arranging the sale;
• All fees and expenses connected with the transaction are paid;
• The lender, if any, supplies the proceeds of the purchase mortgage loan and may collect origination and discount point moneys (from this day on, the loan will earn interest, part of which is prepaid at closing); and
• The buyer receives documents signifying his or her ownership interest in the home.

Except in cases of fraud, at closing all obligations of the seller end, and the buyer assumes responsibility for the property. Therefore, it is important for both seller and buyer to complete all business prior to closing. Failure to get everything required in the contract completed will result in delaying the closing and, in some cases, may even jeopardize the transaction.

Here are things your RE/MAX buyer's agent can help with prior to closing:

• Get loan approval. Loan approval generally sets everything in motion toward a closing. A settlement agent, usually a title insurance company, will be designated and definite time and place of closing is established. The lender should give you a truth-in-lending statement that discloses details about the cost of the loan.
• Conduct preliminary walk-through of the home. This is your opportunity to check that everything is acceptable. The day before closing is usually ideal for a final walk-through. If the sales contract states that everything will be complete and in working order, make sure this is so. If you had an inspector go through the property and the seller promised to fix specific defects, make sure this work has been done. Once the closing takes place, it may be difficult or impossible to correct any problems with the property.
• Get an estimate of cash required at closing. One business day before closing, you have the right to inspect the Uniform Settlement Statement (the "HUD-1" document) which itemizes the costs of all services you must pay at closing. The statement is prepared by the title company or whoever is assigned to conducting the closing. Make sure you bring a certified check for your expense on closing day.
• Verify that all inspections have been made. Inspections should have been completed, with copies of the results delivered to you. All repairs required of the seller by the contract should be completed prior to closing. The seller has no responsibility for repairs or property conditions after closing. However, if any condition was misrepresented or any defect not disclosed, you may still have remedies against the seller.
• Arrange for a representative at closing. In Texas, you have the right to hire an attorney to review all documents and represent you at closing.
• Get insurance. You will need hazard and liability insurance to cover the property starting on the day of closing. The lender will require the house to be insured for at least the amount of the loan. You will need to arrange for a policy to be written prior to closing. One of the expenses you will pay at closing will be the first year's premium for this insurance.