What to Expect at your Real Estate Closing
Most Realtors® take for granted that their buyers and sellers know what "closing" is.
I take nothing for granted.
You will hear the word "closing" on and off throughout the property transaction - until you actually take possession of the property. In the simplest terms closing is where ownership of the property is legally transferred from one person to another.
The first thing you will notice when you come to closing is that there is a pile of papers to sign. Buyer's sign more papers than sellers do - especially if there is a mortgage involved. Buyers will be asked to initial, sign and note so many pages that they will be soon asking... "Is this the last one? Give me the keys!"
Prior to closing buyers and sellers will receive a "net sheet" to review. Normally this is emailed to you a day to a couple hours before closing. Don't panic - someone will explain it to you and it should be your Realtor®.
Net Sheet / HUD 1
A Net Sheet is a list of all of the fees - and there are plenty - that are to be charged to the buyer and seller respectively. At the bottom of the net sheet will be the totals - the amount the buyer will need to bring to closing. The amount the Seller will receive at closing. (Sometimes even the seller also has to bring money to closing).
It is important to know what you are paying. Now is NOT the time to sit and smile warmly at the closing agent pen in hand. If you need an explanation, ask for it! The closing agent has done this hundreds of times. If you are like most people, you don't buy or sell a home every day.
Finally, ASK whether your agent plans to attend closing with you. This may seem to be a "given", but you will be surprised at how many agents do NOT attend closings. Unless it is the day for "Heck to Freeze Over", I will be there with you.