What is Closing
“Closing" is the point in time at which the title to the property is transferred from the seller to the buyer and, unless the sale was for cash, a mortgage is given to the lender.
Since the countdown to closing begins once you, the seller, accept the sales contract, selecting a settlement agent to prepare the documents for your closing is key to making the process a success. Ask your realtor for a recommendation for this process, usually a title company. Once a settlement agent has been selected, he or she will handle the closing process from there.
Next, the settlement agent will need preliminary title work. A title professional will examine the public records regarding your home’s title. This provides any warnings of title flaws that must be dealt with before the property can be exchanged. Title professionals are there for you to make sure all obligations are dealt with and issues resolved before going into closing, if possible.
Finally, the “HUD-1 Settlement Statement” can be prepared by the settlement agent. The “HUD-1” is what outlines all the costs for both the buyer and seller associated with closing. On closing day, the property will be transferred from the seller to the buyer. Once all the signing is complete, the house is sold!