Home Purchase Plan Worksheet Page 31
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3512.) The Closing Process
What does the word “closing” mean? Closing is a term used for the point in time at
which the title to the property is transferred to the buyer and a mortgage is given by the
buyer/borrower to the lender.
Once the seller accepts your offer, the countdown to closing begins. Timing is essential
to make sure all the ingredients for a successful closing are in place.
You will need to choose an attorney to represent you at the closing. You can shop
around for an attorney, or get a recommendation from a friend, your realtor or your
lender. Once you have an attorney, he or she will handle the closing process from there.
Some things that will happen before and at the Closing:
1. If you have given the seller a deposit (binder) the attorney will see that it is
promptly deposited into an escrow account where the funds are held until the
time of closing.
2. The attorney will arrange for the title search. He or she will hire a title
professional who will search and examine the public records for information
related to your home’s title. The title search will uncover any issues that must be
dealt with before the property can change hands. For instance, the previous
owner might have failed to pay property taxes; or there may be an outstanding
mortgage or judgment on the property.
3. If the sellers need to pay off a previous mortgage, the attorney will contact the
existing lender and find out what the payoff figure is.
4. The attorney prepares the HUD-1 Settlement Statement (another word for
“Closing” is “Settlement”). This document outlines all of the costs for both the
buyer and seller associated with the closing. You can download a copy of the
HUD-1 Settlement Statement at:
5. The attorney will tell you how much money you will need to pay at the Closing.
6. The attorney will schedule a Closing date. The Closing can take place in your
attorney’s office, the seller’s attorney’s office or at the financial institution that is
lending you the funds to purchase your home.
7. On Closing day, the property will be transferred from the seller to you. You will
sign a number of documents which will be explained to you by your attorney.
8.
Once the signing is done, the house is yours! Congratulations!! You will receive
the deed to the property. Your attorney will record the deed with the Town Clerk
in the town where you live.
Connecticut Department of Labor
Page 31
5/28/2013
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