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Full time Realtor available 24/7/365 to address your needs. Licensed Realtor since 1997. Licensed appraiser in Illinois. Straight talk & honest answers. Always working for your best interests. Hundreds of closed transactions=great experience=piece of mind for you. Call me for the service you deserve. Satisfaction guaranteed Tom Lysik 224-800-4731

 

tom lysik 224.800.4731

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Closing on Buyers Side

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After going through all the steps you are now ready to close the transaction. Let’s first check, what does closing mean? In different regions of the country other terminology might be used for the same purpose: settlement or closing escrow. Closing is the time at which the title of the property is transferred from seller to the buyer in exchange for agreed selling price.

 

Closing may differ from state to state. In some states the parties to the transaction sit around a single table and exchange copies of required documents. This process is known as “passing papers”. In other states buyers and sellers may never meet at all; the paper work is handled by an escrow agent in a process known as “closing escrow”. Regardless, whether the closing occurs face-to-face or through escrow, the main concerns are that the buyer receives marketable title and the seller receives the purchase price.

 

 Usually someone from the title company will notify you within 2-3 days before closing with the final figures you have to bring to a closing table. Nowadays it is practiced in most parts of the country that you will receive from a title company wiring instructions where to send the final figures. In Illinois, where I practice selling real estate, the closing statement is usually prepared by the buyer’s lender, the lender’s agent (usually a title insurance company) or the seller’s attorney. The typical “face-to-face” closings may be held at different locations like: the title company, lending institution, an attorney for one of the parties, the real estate broker, the county recorder or the escrow company. A closing agent may be a representative of the title company, the lender, the real estate broker or the buyer’s or seller’s attorney. Some title companies and law firms employ paralegal assistants who conduct closings for their firms.

 

Once a closing agent has been selected, he/she will handle the closing process from there. The closing agent orders and then reviews the title insurance policy, survey, property insurance policy, and other items. The purpose of examining the public records of required documents is to check if there are any flaws that must be dealt with before the property can change hands. The flaws may include such items as: unpaid local or state taxes, outstanding mortgage or judgment on the property. If the sales agreement calls for a prior mortgage to be paid off, the closing agent will order payoff amount from the existing lender. In some cases where buyer is assuming the existing loan from the seller the closing agent will be handling it as well. After reviewing the purchase agreement, the closing agent prepares a closing statement known as HUD-1 Settlement Statement which indicates division of income and expenses between the seller and buyer that are associated with the closing. All expenses are itemized to arrive at the exact amount of cash required from the buyer and the net proceeds to the seller. At the closing you will be explained line by line from The HUD-1 of all the closing costs on your side either by your attorney if you have one or by settlement agent. Buyers typically have a lot more documents to sign at the closing than the sellers; this is because of the new mortgage they are taking. All documents you are about to sign will be explained to you by your lawyer or the closing agent. When both parties are satisfied that everything is in order, the exchange is made. The seller delivers the signed deed to the buyer, who accepts it in exchange for the selling price. Now you are basically done, congratulations on purchasing a new home and achieving an American Dream. Later on all pertinent documents will be recorded in the correct order to ensure continuity of title. The buyer’s new mortgage must be recorded after the deed because the buyer cannot pledge the property as security for the loan until he/she owns it.