Closing / Settlement Process
Two terms for the same thing – but what do they amount to?
The closing is nothing more than the formal process of everybody involved sitting down to review the finances, finalize and notarize the signatures, transfer of payments owed from one party to the other, answers to questions from either side of the transaction, handing over the keys and such, and distribution of compensation to the real estate brokerage firms involved.
The typical players at the table are the buyer and seller, their respective real estate agent, the buyer’s lender, the closing officer, and a notary.
It is usually a very low-keyed event of going over all the prepared documents and finalizing last moment adjustments of pre-paid taxes or other municipal services like electric, gas, water, garbage, etc.
Everything that is covered at the closing should have been checked and back-checked, reviewed with each appropriate party involved, and provide for a stress free no surprises event that typically takes about an hour.
While home and other inspections may not be required by the lender it is prudent for the buyer to take advantage of what ever knowledge they can learn about the prospective property they are purchasing.
Below are two links to a typical (simple) residential Cost Estimation sheet of what each side as Buyer or Seller would expect to see on the sale of a home for $100,000 in Cumberland county Pennsylvania using FHA financing.
See my other related pages regarding who pays for what, different types of financing, and other common questions that frequently occur.