For most Americans, buying a home will probably be the most expensive investment of their lives. For many Americans, it will be their only major investment. Luckily, real estate is still one of the best types of investments available—and today, it is available to more Americans than ever.
The closing or settlement is the culmination of the typical purchase transaction. During the closing, the buyer provides personal finance and mortgage loan funds to the seller. In return, the seller provides the property’s title and necessary keys to the buyer. That’s the simple, easy description.
The closing is actually a hectic event for many home buyers and real estate investors, especially for rookie or novice purchasers. The purchaser must review and sign dozens of legal documents and disclosures, the bulk of which are required for the mortgage financing. The buyer often must also satisfy final documentary, verification or settlement conditions, all of which are meant to satisfy all legal, lender and seller requirements.
With counsel from experienced real estate agents, attorneys and mortgage lenders, home buyers can and should relax. However, the sheer weight of the first home purchase often does not allow much relief for the home buyer.