Michael Holigan: Today's the big day. Kris and Kimberly Maag are about to close on their first home. They're meeting at a title company with an escrow officer who will guide them through that sometimes mysterious process.
Kris Maag: Maybe just a little uncertain as to what to expect, but not necessarily stressed I wouldn't say. Just a little bit apprehensive as far as in terms that we don't know what to expect necessarily.
Kimberly Maag: Yeah.
KM: I wouldn't say we're necessarily stressed.
MH: This is where money gets disbursed and the ownership is transferred. There are figures to check and papers to sign. All "I"'s have to be dotted and "T"'s crossed. Some home buyers prefer to receive copies of the documents a couple of days before closing. Kris and Kimberly didn't find that necessary. Today's it's just the escrow officer involved in the closing. Sometimes the seller will be there, sometimes an attorney. Closing is where everyone gets paid and you get ownership of the house. Before signing any documents though, check all the financial terms and make sure they're correct. Be sure to bring with you your home owner's insurance policy and certified checks for closing costs and prepays. The closing costs include loan origination fees, discount fees, if any, title insurance, underwriter fees and transfer tax. Also you need money for prepays like mortgage insurance and taxes. The closer can furnish you with a copy of settlement in advance. The amount should be approximately the same as the good faith estimate the lender provided at the start. For the Maag's, all the documents were in order so their closing went smoothly. They signed the papers and paid the money. Their experience was relatively painless.
KM: I didn't think it was that bad. It was just that...a lot of confirmation and things I already knew and some things we had already gotten to sign previously. So I didn't think it was bad at all.
MH: The amount of time to closing can vary. It depends on how long it takes to complete the home, to verify your finances, to check your credit, plus you need an appraisal and in most cases a title search. But once you do close on that house, you've taken your first step to home ownership.
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Episode 45 1996 - 97 Season
| Termites | Utility Knifes | Flooring | Changing Shower Head | Choosing Carpet | Painting Tip | The Closing |