Buyers Ed Test tips...
You should know and understand the following points covered within the Closing Your Loan section:
What to bring
- Documents required for closing include proof of homeowners insurance (binder); a certified or cashier’s check for down payment and closing costs; and a paid receipt for first-year’s homeowners insurance premium
During closing
- The purpose of the Deed is to provide legal documentation transferring ownership of the property from the seller to the buyer.
- Title insurance protects the buyer.
- Title insurance protects your legal ownership of the property you’re purchasing. Without this document, you run the risk of paying back unpaid taxes for the property, having the property seized and sold to pay off the seller’s back taxes, and not being aware of any liens or restrictions that affect ownership of the property.
- The Commitment for Title Insurance is not the actual Title Insurance policy, but it guarantees that the policy will be issued if conditions specified in the commitment are met.
- Closing costs represented on the Settlement Statement cover more than just the price of the property and include attorney’s fees, insurance costs and prepayment of real estate taxes.
- The final step in the closing process is distribution of the money generated by the sale.
