Closing refers to the meeting that will take place when the title of the property is transferred from the seller to the buyer. If you are financing your home, this will also be the time that you sign the mortgage papers and give the deed of trust to your lending institution as collateral for the loan. Any remaining closing costs will also need to be paid as part of this process.
Closing costs associated with the loan include an origination charge, points if necessary to lower the interest rate, the appraisal fee, credit report fee, flood certification, title search and lender’s title insurance. Other closing costs include attorney’s fees, the home inspection, transfer taxes and government recording fee, 12 months of pre-paid homeowner’s insurance, initial escrow payments, and usually owner’s title insurance. A rule of thumb estimator is that closing costs will equal 3-5% of the home’s value. Before the closing date, you will be given a Closing Disclosure containing all of the costs for both the seller and the buyer.
Once you apply for a mortgage, your lender has three days from the application date to provide you with a Loan Estimate detailing the costs of the loan as well as the lender-related closing costs and information outlining the closing process. There should be no surprises on the day of the closing. The closing date is specified in the sales agreement, so the clock starts ticking as soon as the seller accepts. Timing is critical to making sure all of the information needed for the closing is available in time. It is important to have an agent you can trust to guide you through this process from here. With over 13 years of experience buying and selling property in southeastern Wisconsin, Dan Konicek will guide you through this process and make sure you don’t experience any unnecessary stress and concern.
When the sales agreement is executed, you will be required to pay the deposit amount specified in the contract. Your agent will make sure this money is deposited into an escrow account. The funds will be held in that account until the time of the closing when they will be transferred to the seller as part of the sale price. You will also need to hire a title professional to research public records and conduct a title search to make sure there are no claims against the property. They will also make sure all state and local taxes are paid and there are no unexpected liens on the property such as a judgment, code enforcement lien, or undisclosed mortgage. Dan is happy to recommend a title company, real estate attorney, and home inspector based on his knowledge of the local real estate market.
The closing will take place with you (the buyer), your agent and/or lawyer, the seller and their representatives as well as a representative from your lending institution. There will be many documents for you to sign – each one will be explained to you in detail before you sign it and you will have the opportunity to ask for clarification if you need it. Once everything is signed, the property is yours.
You can rely on the education and experience of Dan Konicek to guide you through the home buying experience. Call Dan today to find your perfect home in one of our featured areas. From downtown to Bay View to the east side in Milwaukee, from Wauwatosa and Elm Grove to the west, Franklinand Racine to the south, and Shorewood andMequon to the north, Paramount Realty knows the greater Milwaukee region and understands the unique characteristics of each community. We have helped buyers and sellers throughout Milwaukee county includingWhitefish Bay, Greendale, and the small village of River Hills.