The Closing Process

The closing process is the final step in the purchase of your new home. Closing is coordinated between your lender, closing officer (an escrow officer or representative of the lender), and title company.

An earnest money deposit will display your sincere intention to the seller of your desire to purchase the property while your loan is being processed by your lender. This earnest money deposit is then credited towards the purchase price of the home once your loan has been approved and the down payment is made.

The seller's purchase and sales agreement will be reviewed by the closing officer; at the same time, a title search is conducted to determine the accuracy of the title, whether or not there are any liens against the home, and if the title is indeed sound and insurable.

The closing documents are prepared and the closing officer oversees the signing between you and the seller. When your loan has been approved and financing is verified, your down payment is received and the signed closing documents are handed over to the lender. Your lender then releases your file to the title company to be recorded with the County Courthouse.

The lender accounts for all money, and forwards funds to the closing officer, who disperses them. Funds are distributed, the transaction is closed, and the title changes hands.

Congratulations, you're now the owner of a new home!

Note: For a more detailed overview of the closing process, including answers to commonly asked questions, Talon Northwest is an excellent source of information. Escrow Partners is my exclusive provider for escrow services, offering outstanding service to both buyers and sellers.

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