The closing is the last step in the Texas home
buying process. After the home closing is complete, you will be the legal owner
of your new home. For this reason, it is important to be prepared for this
final step. In order to make sure everything goes off without a hitch, we will
break down the closing process so you know what to expect when the time comes.
What to Prepare for the Texas
You don’t want to show up to the closing
unprepared. A few days before the scheduled date, gather all the paperwork
you’ve filled out over the course of the home buying process. This may include:
- Contract signed by your real
- Inspection and home appraisal
- Proof of title and title insurance provided by your title agent
- Good-faith estimate (GFE) from your lender
Other items you may need to bring to the
- Two forms of valid photo identification.
- Necessary closing funds in the form of a cashier’s check, treasurer’s check, or wire transfer.
- Homeowner’s insurance policy with a paid receipt.
It is also important to take steps to protect yourself from cyber risks during the home closing process. Real estate-related cybercrime has continued to grow over the past few years. Talk to your real estate professionals about precautions you can take to transfer information securely.
Who Should Be Present at the
Here is a list of people who may be present at
the closing, depending on the circumstances:
- Real Estate Agents (Buyer and
- Lender Representative
- Title Agent
Traditionally, closing is done in person with all parties involved in the transaction present to sign all necessary documents. However, online remote closing is becoming more and more popular and has certain advantages over a traditional closing, including cost, time, and overall convenience. While remote closing is still being rolled out across the country, they are legal in Texas, so a fully-online closing is possible in this state.
Understanding the Closing Costs
It is important to carefully keep track of the
various costs you may need to pay throughout the home buying process. These
costs can include, but are not limited to:
- Application fees
- Appraisal fees
- Attorney fees
- Courier fees
- Credit Report fees
- Escrow fees
- Home Inspection fees
- Origination fees
- Recording fees
- Title Insurance Premium
- Property Title Search fees
- Prepaid interest
Closing Process Paperwork
At the closing, you will be required to review
and sign various documents. Some of these may include:
- HUD-1 Settlement Statement
- Truth in Lending (TILA) Statement
- Mortgage Note
- Mortgage or Deed of Trust
- Certificate of Occupancy
Here are some sample documents to familiarize
yourself with the paperwork you might see before the closing arrives:
HUD-1 Settlement Statement
- Sample TILA Statement
- Sample Mortgage, Deed of Trust, or Security Deed
It is important to note that if you are buying
a home after foreclosure, the bank will usually require
more paperwork. Talk to your real estate professional to understand the
differences in the closing process when buying a foreclosed home in Texas.
How to Make Your Texas Home
Closing Process a Smooth One
While the closing process may seem daunting,
there are a few steps you can take to ensure a successful closing.
- Work with only trusted real estate professionals who will help guide you through the process and be available to answer all of your questions.
- Take steps to protect yourself from cybercrime such as wire fraud. Discuss these precautions with your real estate professional.
- Arrive at the closing prepared with all necessary fees and documents. Take your time and don’t be afraid to ask questions if you aren’t clear on what you are signing.
Once the closing process is complete, you’ll be given the keys to your new home.
Thank You Kevin for another one of your great articles. Debbie Warford
Kevin McTigue of JSMT Media is a copywriter for several websites in various industries, including Scott Title Services, a New Jersey-based title insurance company.