You’re finally in the home stretch. Closing—also known as settlement--is the last step, the official transfer of the property from the seller to you. The time between final acceptance of the Purchase agreement by the buyer and seller and closing is limited, so it is very important that all participants---the agents, lender, closer, buyer, and seller have an organized approach to the process and stay on top of all the details. Additionally, communication with the parties is extremely important to keep them apprised of the progress.

A title is the document that verifies your legal right to your new home. To make sure there are no past errors or legal entanglements that might affect your ownership rights, all properties are subjected to a title search before closing, which the seller usually pays for. Sometimes, however, a title problem will unexpectedly surface days or even years later:

If a problem does occur, you’ll be glad to have the protection of title insurance. There are two kinds of title insurance: one that protects the lender only (required by most lenders) and one that protects you (optional). Don’t underestimate the importance of this coverage—it will protect you, the buyer, against title defects, easements, judgments or liens and will pay the court costs and fees associated with any claims, plus any other losses. It will also cover you and your heirs forever—even after you sell the property.

As you get closer to the actual date of closing, it’s time to contact the utility companies and apply to have the various services put into your name as of the closing date. We can assist you with telephone numbers etc if you’re not familiar with the area. Utility services to consider are: Natural Gas, Fuel Oil, Propane, Water, Sewer, Electric, Telephone, Cable or Satellite, and Trash Removal.

Also, this is the time to make arrangements for property insurance on your new home. You will be expected to have a homeowner’s insurance binder, with proof of one year’s payment, at closing.

It is time to schedule a final walk-through of your new home as close to the closing date and time as possible. We will coordinate with the sellers to make sure that the time you have chosen is convenient for them. This is the time to address any last minute issues concerning the home that you might need to clarify and finalize at the closing table and to make sure that everything you thought was included in the purchase agreement remains on the property.

The Settlement Statement (also called the Closing Statement or HUD-1) is a document that presents a final, detailed accounting for a real estate transaction, listing each party’s charges and credits and the amount each will receive or be required to pay at closing. Closing companies usually try to send us a copy to the respective agents ahead of time so that we may review and possibly request changes, additions, or omissions to help facilitate a smooth closing process. We will also wish to review the statement with you prior to closing even though it will be explained to you in detail by the closer before you sign it.

Contrary to terror stories you may have heard, the typical closing proceeds without complications and only lasts an hour or so. It usually takes place at the office of the title company and we there with you. Primarily, you’ll sign numerous papers and documents, all of which will be explained to you along the way. You’ll finalize your mortgage, pay what’s due and get the keys to your new home!

Your Settlement Statement outlines the various expenses you’ll incur at the closing and gives you the final amount needed to close. Basically, you’ll need a certified or cashier’s check, payable to the closing company, that covers:

In addition, bring your personal checkbook to cover any extra charges, if necessary, a photo ID, your new homeowner’s insurance binder with proof of payment, and a list of your addresses for the past 10 years.

Whether you’re a first-time buyer or a repeat buyer, remember that the papers you receive at settlement are extremely valuable, so hold on to them! In the short-term they can help establish tax deductions for the year in which the property was purchased. In the future, such papers will be important for tax purposes when the property is sold.