Settlement

As the time for settlement approaches, the closing agent will contact the parties to the transaction to arrange a convenient time and place for the closing to occur. At this time, the lender may ask you to furnish documentation that you have secured a homeowner's insurance policy for the property.

The actual closing procedures and associated fees vary, depending on the specific settlement company chosen and the location of the property you are buying whether it is in the District of Columbia, Maryland or Virginia. In addition, your lender will generally require you to pay several additional fees, such as application and credit report fees, appraisal fees, and underwriting fees, which will typically add an additional $1,000 or so to your total closing costs. Within 24 hours of closing, the settlement agent or the lender will contact you to let you know exactly how much money, if any, you will need to bring to closing (most closing agents require that these funds be in the form of a cashier's check, money order, or wire transfer.)

At your closing, ownership of the property is transferred from the seller to you. A closing agent (usually a title agency representative or an attorney you have selected, depending on what is customary in the area where the property is located) coordinates and distributes all of the paperwork and funds in accordance with the terms of the sales contract. Congratulations! You are now the proud owner of a new home!