San Diego (PRWEB) June 16, 2013
LoanLove.com is a trusted destination for current mortgage news and expert loan advice. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals. A recent article on LoanLove.com helps to guide home owners and home buyers by providing helpful information on what to expect when buying or selling a house.
The article explains the real estate closing process; a process that can seem confusing and a bit mysterious even to experienced home owners. Many home owners really do not know what they should expect when closing on a home. As the Loan Love article puts it - “Closing, or settlement, is a lot more than having the keys to your new home turned over to you. Know what to expect when closing on a house, and you can avoid any unpleasant surprises. For instance, there are papers to sign – lots of them – and costs to pay – lots of them. Even many seasoned homebuyers find the closing process to be shrouded in mystery.”
However, this process does not need to be confusing. As long as the homeowner is aware of what to expect when closing on a home, they will feel confident and prepared and will avoid running into any problems along the way. The main reason for confusion is that most buyers consider closing to be the day when they sign the final bill of sale. However, the closing process actually starts a lot sooner – usually weeks before – when they sign the purchase agreement. The final day of closing is when they seal the deal, signing papers to finalize the sale and mortgage and paying the costs associated with the loan and the sale itself.
The Loan Love article gives a quick rundown of what real estate closing typically entails so that the homeowner or the seller of the home will be fully prepared. The first thing to consider is who actually does the closing. In some areas, it’s a lawyer; in others, it’s an escrow or settlement company; and in still others, it’s the company that performed the title search. In any case the responsibilities of this entity are the same: to make sure taxes associated with the sale are paid, have the deed recorded and file other documents required by the laws of the area. Unlike the real estate agent, the closing agent represents and helps both the buyer and the seller equally.
So what should people expect when closing on a home? Loan Love says: “Closing costs including all the taxes and fees associated with the final sale of the property usually range from 2 percent to 6 percent of the cost of the home. That means if the home costs $200,000, you can expect fees from an acceptable $4,000 to a chilling $12,000 depending on your area. Some lenders may offer no-closing-fee loans; while these are certainly a good option for many, be aware that most of these loans involve higher interest fees to make up the difference. Just as you got a good faith estimate (GFE) from your lender, at closing you’ll get a HUD-1 form detailing all your actual costs. Some costs can be negotiated or eliminated before closing, so pay attention to your GFE and negotiate fees wherever you can.”
For more information on finding the right loan and closing on a home, visit LoanLove.com to read the article in full.