What Happens at Closing

Who Does What on Closing Day?

You’ll interact with many people and entities in the lead-up to closing, including:

Who What
Settlement/Escrow Agent Ensures the sales agreement terms are met and the right paperwork is filed.
Title Company Researches legal title to the property to ensure there are no hurdles that may obstruct the property transfer. The title company also issues insurance policies, facilitates closings, and files and records paperwork.
Insurance Company Provides the required homeowners insurance policy. Some regions also require flood or hazard insurance.
Home Inspector Examines the condition of the home, covering everything from plumbing and electricity to mold and termite damage.
Surveyor Confirms the size and position of the lot on which the house is located.
Appraiser Assesses the value of the property and fills out a report detailing an opinion of value. This report is given to you and the lender.

Estimating Your Closing Costs

Closing costs typically are about 3% of your new home’s purchase price. This amount may vary, however, based on your home’s location, cost and other factors.

Lenders are required to provide a Loan Estimate, which includes information about closing costs, within three days after you apply for a loan. Remember—this is just an estimate. Your Closing Disclosure (formerly HUD-1 Settlement Statement) provides final closing costs.

Certain expenses, such as homeowners insurance, property taxes and escrow funds need to be paid prior to closing on your home.  

Mortgage Closing Cost Calculator

Calculate your closing costs for a given set of fixed-rate loan terms. The calculator lumps settlement charges into two categories: origination charges and other settlement services. It's helpful to get an official Loan Estimate before choosing a loan.

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