Closing is the final step in transferring ownership of a real estate property from real estate seller to real estate buyer. Some states require a lawyer to be present at a closing. Closing costs can include the cost of the land survey, broker’s fees, taxes, attorney’s fees, utility fees, homeowners association fees and inspection fees. The fees can vary depending on the contract, the location, and the time of the month the closing occurs. Get more information here about real estate closing transactions.
Concealing Information Leads To Illegal Lending
A real estate investor wants to know if an unusual deal where he is willing to pay more than the asking price is considered illegal lending activity. The buyer is wondering if paying the seller outside of the stated deal with the mortgage company and not informing the lender is illegal. A buyer and a seller can agree to one price in a contract and agree that the seller will credit or pay the buyer money back at settlement. However, some people might suggest this transaction is illegal because you have a lender involved.
Negotiating Closing Costs
Shopping for a new mortgage can be confusing. You should ask what for an itemization of closing costs, because some of them may be negotiable. You may be able to close at the end of the month instead of at the beginning and cut down on your prepaid interest, but this only changes the cash you'll need at the closing and does not reduce your loan fees. Ask the lender to provide you with an estimate and make sure the closing costs are itemized so you can see what you're paying.
Sellers Not Required To Attend Closing
In most cases, sellers do not have to show up to the closing. If you're selling, you may be able to sign your paperwork in advance, and give your attorney a power of attorney to close the deal on your behalf..
Closing Canceled at Last Moment
A young couple was on the way to owning their first condo. On the morning of the closing, the lender calls to say they will not be able to make the loan because the building is a condominium conversion. Ilyce and Sam give the reader advice on how to recover their many expenses and how to avoid this homebuyer nightmare.
PMI Changes At Closing
A home buyer received a good faith estimate including an estimated amount for the private mortgage insurance. At the closing, the PMI amount was different. By choosing a different type of loan or increasing your loan amount, they could have affected the amount of the monthly PMI payment. However, the home buyer could have avoided PMI all together with an 80/10/10 loan.
How To Resolve Missing Building Permits
When you buy a home that's had home improvements made without building permits, it's up to you to rectify that with your local government. In many cases, the local government will allow you to buy the building permits after the fact and consider the work in compliance with the building code. If you discover that the home you want to buy has had work done without building permits, you can stop the closing on the house.
Closing Should Include Tax Bill Discussion
What can you do if you receive property tax bills that were the responsibility of a previous owner? The title company who provided title insurance at the closing should be responsible for the costs. The title company certifies that a title is free and clear of all tax obligations at closing. All costs, including taxes, should be determined at closing.