This video explains the closing process and closing costs.
Closing, or settlement, is about you becoming the legal
owner of the home you are wishing to buy. Public records currently agree the
house belongs to the owners because the title establishes their legal
ownership. Swapping these requires Loan Steps, Legal Steps, and Title Steps.
Loan Steps: banks loan you the offer money and you promise
to pay back more over time. They charge you loan fees, and collect insurance,
interest and reserves.
Legal Steps: to make the public records show that you are
the legal owner of the house; the government has to show the transfer of the
title through a deed. They charge recordation taxes, transfer taxes, and taxes and stamps.
Title Steps: the
title company handles the transfer of the title; you pay for their help. They have to find all the records from the
government to make sure the sellers actually can sell the home; this is called
a Title Search. The seller might have missing heirs, former spouses, or other
claims that show up long after the sale that shows that the property you are purchasing
actually belongs to them. To protect this investment you purchase Title Insurance.
If you or your agent orders title work Michigan Land Title Association member, you will get a quote on these costs.
To recap, closing involves Loan costs, Legal fees, and Title charges. At your closing meeting with the
sellers, the title company will have all of these costs summarized on the government
HUD- 1 Settlement Statement
I agree with all the guide you posted above. And also, having a good deal and conversation to the seller is also one of the most important things in buying a properties.
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Thank you Justin! We enjoy hearing that our blog is helpful during the home buying process. Don't forget to follow us for more helpful tips!
ReplyDelete-The KW Selling Team
It is certainly important for homebuyers to fully understand how home loan works to avoid problems in the future. A big factor behind the collapse of the housing market had to do with borrowers taking out loans they didn't understand, especially during the subprime lending boom.
ReplyDeleteCompleting all legal process and title clearing process is must important thing for safe home buying deal according to me. You can make a right and legal home buying deal from hiring real estate agent.
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Buying a property is probably one of the biggest purchases you can ever make. you should take real estate expert advice. yes you put it right that Legally property should be clear.
ReplyDeleteNewbuy
Man, there are a lot of steps to closing a real estate deal! Having a trustworthy Weston MA real estate agent really helps, I'm sure. Thanks for the info guys!
ReplyDeleteUseful home ownership to know - thanks for sharing.
ReplyDelete-Jon
Buying a property is very important but difficult discussion for everyone.property buying process is probably the biggest financial decision you’ll ever have to make. Buying property through real estate agent can be good but it also requires for you to choose a knowledgeable agent. This blog is quite amazing that have provided the best knowledge.
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When you are planning to buy home, you should have good knowledge about home buying process. good knowledge about home buying can help lot in your home buying process and points you made is good, did get good information.
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