Describe in detail what takes place at a real estate closing. What are closing costs?

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Answer 1

The real estate closing, also called the settlement or the closing of escrow, is coordinated by the escrow agent. At the closing, several events happen at once:•The buyer signs the mortgage note-if the purchase was financed by a mortgage.•Title insurance is obtained.•The seller receives the proceeds of the sale-the purchase price less the amount previously paid by the buyer and less closing costs.•The deed to the property is delivered to the buyer.?The deed is the instrument of conveyance (transfer) of the real property. It gives the names of the seller (grantor) and buyer (grantee), describes the property being transferred, evidences the seller's intent to convey (for example, "I hereby bargain, sell, grant, or give") the property, and contains the seller's signature.Closing costs comprise fees for services, including those performed by the lender, escrow agent, and title company. These costs can range from several hundred to several thousand dollars, depending on the amount of the mortgage loan and other conditions of the sale, and must be paid, in cash, at the closing. Usually, the buyer and seller can learn in advance what the closing costs will be by checking (or having their attorneys or real estate agents check) with the escrow agent handling the closing. Also, under the federal Real Estate Settlement Procedures Act, lending institutions must notify-within a specified timeperiod-each applicant for a mortgage loan of the precise costs that must be paid at the closing.