Property Rights Attorneys

Serving all of Florida

Things to Know when Closing
on a House or Condominium

Buying a home or condo, especially if it's your first time, can be a stressful experience. It might seem as if you are trying to keep track of dozens of things at once. Most of the time, everything goes smoothly. But once in a while, something may come up and force you to reconsider your purchase. It's extremely important that you know exactly what it is you are signing when you close. A basic understanding of each document is helpful, but may not be enough. Here are some things to know about the closing if you are thinking of buying a home or a condominium.

• Hiring a property rights attorney - When you decide to purchase a home or condo, you are buying the most valuable asset you will ever own. By having a property rights lawyer look over the offer, you can be sure that proper contingencies are added, they will be able to negotiate and help draft the sale and purchase agreements, as well as be sure you do not lose the deposit if your transaction does not go through. During the closing, your lawyer can review the loan documents and the settlement statement to make sure you have not been overcharged and that your loan terms are the same ones you were promised.
• Mortgage loan from bank or mortgage broker - This is a decision best left up to you because it depends on your circumstances. A mortgage broker will help you find a bank that will make the loan, but is not a bank him or herself. Using a mortgage broker requires that you take some extra steps to secure your interests. Be sure to get everything in writing, and make sure the mortgage broker has filled out the required forms properly.
• Documents for bank attorney - Before closing, you will receive a letter from the bank's attorney letting you know all the documents needed to close the loan. They will need a copy of the purchase and sale agreement, and ask you to obtain hazard insurance for the property. A copy of the binder showing the bank as the mortgagee will be asked for, as will a receipt confirming hazard insurance has been paid for one year. Getting this to them quickly will ensure that the loan is closed in a timely manner.
• Documents from bank attorney - The day before the closing you should receive a HUD-1 Settlement Statement. Be sure to read over it for any errors. This form is two pages long. The first page shows items allocated between the seller and the buyer, including purchase price and other charges to the buyer, as well as loan proceeds and any deposits minus additional charges to the seller. Taxes, such as water and sewer will also appear. Third party payments charged to both the buyer and seller, the broker's commission, bank charges, attorney fees, insurance title premiums, and other charges incurred at the registry of deeds will appear on the second page. If you need to bring any money to the closing, the amount will show on the form. The amount of the net proceeds to be paid to the seller will also be indicated.
• Things to bring with you to the closing - Anyone who is signing the loan document needs to be present, unless one of them has executed a power of attorney. This will need to be reviewed and accepted by the bank's attorney. Multiple forms of identification (driver's license, passport, birth certificate) will be needed, as well as the Settlement Statement. If this shows any money needed at the closing, this must be brought as a bank or certified check. You may also want to bring your checkbook in case any other amount arises.
• Documents to be signed at the closing - The HUD-1 Settlement Statement; the Promissory Note promising to repay the loan (make sure everything is correct on this); the Mortgage to convey the property to the bank as security for the loan; a Truth in Lending statement brought by the lender, which will show you the Annual Percentage Rate for your loan; a number of other documents including escrow account disclosure, typed loan application, compliance and correction agreement, W-9 form (taxpayer identification), and first payment letter.
• After closing documents - After the closing, you should receive the deed to the property, a copy of the loan documents (if you did not receive them at the actual closing), and an owner's title insurance policy.

Though there is much to get through before you arrive at the closing, this is the part that puts you well on your way to owning your property. If you have questions regarding the closing or other parts of buying a house or condominium, please contact the Florida Property Rights Law Firm. We serve people throughout the State of Florida including the areas of Miami, Jacksonville, Fort Lauderdale, Naples, Fort Myers, and Orlando.