Documents You Will Need to Sign on Closing Day

As part of being a first time home buyer, it is okay to feel a little bit intimidated about closing day. There is no real short way around the many documents you will have to go over during this time, but getting to know these ones is extremely important.

The Warranty Deed Explained

This document will simply explain that the title is being transferred to the buyer, from the seller. It will also have a very detailed and legal property description. Hold onto this one, because you may need it later, if repairs are needed.

This is What the "Statement of Information" Document is for

The title company will be the main user of this document. It will detail the buyer’s personal information and ensure that the buyer, and no one else, is the individual buying the property. This is how the title company shows that they got all the information that they needed, and what they use to list owner information in their property database.

Here's the HUD1 Settlement Form in a Nutshell

New homeowners can feel better about this document than in the past. The form has been narrowed down considerably from the past years. It contains separate pages that will individually outline all of the fees that will be paid by both parties - buyer and seller. You will usually have a chance to view this document before closing, but just to be on the safe side, you should review it again during closing.

Proration Documents will Show Who's Responsible What

This is a clear statement of any HOA dues, interest, and property taxes. It will explain exactly which closing fees, costs, and debt the buyer will be paying and which ones the seller will be paying. So, if the seller is behind on taxes, and the buyer agreed to pay these during the transaction, that would be listed in the proration documents.

Your Certificate of Occupancy Says You're Free to Move in!

This form is simple. It simply gives you the go ahead to move into your new property. When you sign this form, you know the deal is real. This is when the buyer's journey ends, and the homeowner's journey begins.