Settlement - the final stage of home buying.

Here's how to make sure it goes off without a hitch!

Settlement is the process of the final part of buying a home. All money changes hands, the deed is transferred to you from the person selling the home, all that paperwork will need to be done, and then, finally, the house will be yours. (Fun fact: a buyer will sign their name anywhere from ten to thirty times during this process, depending on the paperwork!)

Closing is when the keys are handed off, but settlement is all the paperwork that leads up to that point, though the terms are often used interchangeably. The settlement is generally a complicated process that requires quite a bit of paperwork, as well as things being filed or handled in a timely fashion.

The safest and easiest way to handle it is with the guidance of an experienced realtor, who can make sure all those little details are taken into consideration on top of the regular paperwork. Prior to the settlement, the utilities for the property should be transferred into your name. This is normally handled anywhere from a few days to a week prior.

Below are five important pieces of paperwork for a buyer that you will want copies of.

1. Fixed rate note (personal guarantee you will repay the loan aka mortgage to the lender)

2. FNMA uniform mortgage (mortgage paperwork, prepared by lender, it gets filed with the deed and a lien is created against the property. Once the mortgage is paid off, the lien is removed)

3. Closing disclosure (prepared by lender and title company, contains financial information including but not limited to closing costs, and total monthly mortgage cost)

4. Deed (prepared by title company, paperwork that signifies you are the new owner of the property. It's filed with the county and a matter of public record)

5. Marked up title (the one you receive at closing, it's good to keep it for your own records until the information has been filed with the local government and a proper copy is sent in the mail)

Buyers are also required to be there, in person, during the settlement, so make sure to arrive and have plenty of pens at the ready for all those signatures. The process of handling the paperwork itself will usually take roughly an hour for the buyer, after which the seller normally leaves and you will be free to do things such as surveying the property and the loan documents.

Several things you will want to bring with you for this process are: a certified check (or wire the money itself); photo identification (passport, drivers license, etc.); and a personal checkbook (in case the certified check or funds wired had a miscalculation).

Please remember if you have any questions or concerns about this process, a realtor can be one of the most useful resources to make sure everything is handled when and how it needs to be for the smoothest transition possible.

If you have any questions about this process or would like a consultation, please reach out to us using the form below!