Home Buying: Closing

You are starting to feel the excitement build, your closing date is quickly approaching. Outside of your final walk-through, there are only a couple more things that need to be done – reviewing your Final Closing Statement (HUD-1 Statement). Go over the calculations and make sure that the closing statement matches as closely as possible to the good faith estimate your lender gave you towards the beginning.

You will also need to review the preliminary title report given to you by the escrow company. You need to make sure that the title company has your personal information correct, along with other going onto title with you.

When it comes time to sign escrow paperwork, you will need to being in a cashier’s check for your portion of closing costs. The title company will tell you how much your will owe for the down payment, loan origination fees, points, appraisal fee (if being paid through escrow), credit report (if being paid through escrow), private mortgage insurance premiums, homeowner’s insurance, property tax, deed recording, title insurance policy premiums, inspections feed (if being paid through escrow), notary fees, and any proration’s.

After completing the signing, you patiently wait for that phone call to come in from your agent. The phone finally rings and it is your agent on the other end congratulating you on the successful purchase of your new home. You work out all the details about how you are to get your new keys and so on. There is one thing that may not get discussed, but is important, and that is what needs to be kept after your escrow does close.

It is required through RESPA (Real Estate Settlement Procedures Act) that you receive the HUD-1 Statement, itemizing all the costs associated with the closing. You will need this statement for income tax purposes.