Settlement is when you and your agent and the seller (and/or the seller’s representative), along with a title attorney, all sit down at a big table and sign lots of papers. You’ll do most of the signing. Money usually changes hands too, either electronically or via cashier’s check. This is when title to the property changes hands. You get the keys and the seller gets the money.
You and your agent should have received the HUD-1 Settlement Statement one day prior to going to the settlement. The HUD-1 includes a detailed list of costs related to the transaction including purchase price, your down payment, commissions, and a variety of other expenses that comprise the cost of buying your home. It also details the seller’s expenses and proceeds.
Your agent should be checking with your lender on a daily basis in the days prior to settlement, to ensure all details are addressed and there are no surprises when you sit down at the aforementioned big table.
Just prior to the closing, you will do a final walk through of the property, to ensure it’s in the agreed to condition when the contract was signed.