1. All conditions of the loan offer stated in the mortgage commitment letter must be met before the closing can take place. For example, if the home you are buying was found have zoning code violations, the mortgage company will require that these violations be corrected before the real estate closing.
2. The mortgage company will require the buyer to purchase home insurance. This protects the buyer and the mortgage company in case the house is damaged or destroyed. The cost of home insurance can range from approximately $200.00 to $400.00 per year.
3. The mortgage company may require the buyer to obtain a survey of the property to ensure that the property's boundaries are correctly stated in the sales contract. The cost of a survey can run approximately $300.00 for a single-family home. Typically, the mortgage company will also independently appraise the value of the house to ensure that home purchase price was not significantly greater than the appraised value.
4. If the property being purchased is not served by a local government (i.e. municipal) water or sewer system, the buyer will be required to obtain local government certification of the private water source and sanitary sewer facility before closing. Usually, the county government performs the certification.
5. Typically, the mortgage company will require the buyer to purchase private mortgage insurance if the down payment is less than 20% of the purchase price of the property. Check with your mortgage company to determine the cost of private mortgage insurance.
   
   

What happens at the Real Estate Closing?

Typically, real estate closings take place at title insurance company, since the closing agent for the title insurance company assembles all settlement papers associated with transferring the title of the home from the seller to the buyer. Today, almost all homes sold by an owner or with the assistance of a real estate broker retain the services of a title insurance company to ensure real estate closing is handled properly.

The standard real estate closing will consist of the following:

1. Typically, the real estate closing is attended by the selling party, buying party, closing agent from title insurance company, possibly a representative from the mortgage company. A seller's and/or buyer's real estate broker may also attend, if a broker(s) participated in the sale or purchase of the home.
2. The closing agent for the title insurance company reviews the terms of the settlement with the home buyers, including the buyer's and seller's allocated costs. The closing agent can answer any questions from the buyer or seller before or during the closing.
3. The representative from the mortgage company or the closing agent will review the mortgage loan documents with the buyer. The mortgage company requires the buyer to bring proof of homeowners insurance of the purchased property to the real estate closing.
4. If both the buyer and seller agree that the settlement and loan papers are in order, the buyer and seller will sign appropriate papers as specified by the closing agent. Finally, the buyer will provide a certified or cashier's check for the appropriate amount as specified in the settlement sheet. The closing agent will issue the seller the proceeds less any expenses that need to be paid by the seller.
5. The buyer receives the keys to the newly purchased home.
6. After the meeting the title insurance company will record the property deed at the appropriate county government registry of deeds office.