Once the borrower has met all the required conditions the loan will be considered “clear to close.” This means that the loan can be funded and the purchase can be completed.

At this point the Attorney will order a title search. This is a search done of the land records. The searcher will insure that there are no unreleased mortgages on record from previous owners. They will look for issues with title. For example, does the person selling the property actually own the property, and how did they acquire the title. Copies of all necessary title documents will be made. Copies of maps will be gathered, the assessors card will be pulled and the current tax bill will be obtained. The official legal description, by metes and bounds, will also be obtained.

At the same time your attorney will take steps to begin your title insurance policy. There are many important reasons to have title insurance. You can ready more about title insurance here.

Shortly before the actual closing the borrower will receive the Closing Disclosure. This is a five page document which will have all the financial details of your purchase. It will show the loan terms, the projected monthly payment, the amount needed to pay for taxes and home owner’s insurance each month if you have an escrow, and all other closing costs.

At the closing, title will be transferred from the seller to the buyer. This is done by the signing of the deed. The borrower will also sign the mortgage documents and the note. The Attorney will also receive the closing package from your lender. You can learn more about the closing process by clicking here.