My Offer Has Been Accepted - Now What?

Helping You Understand The Closing Process

Now that you’ve signed an offer to purchase and contract, you’re ready to close on your first Cleveland area home! To help you have a complete understanding of the Ohio closing process, each item is identified point-by-point so you know what costs are associated with the closing. Be sure to select a safe location (safe deposit box at your bank) to store your closing documents for future reference. Understanding the closing process will help ease any stress about buying your first home. This information is provided for your convenience.

Common Closing Costs for Cleveland Area First-Time Home Buyers

Once your loan consultant has disclosed a good faith estimate of all settlement costs associated with the purchase of your first home, be prepared to provide a cashier’s check for all closing costs. The title company will provide a final settlement statement prior to closing so you know how much money to bring to your closing.

Your cashier’s check will generally cover the following items:

• Down payment
• Loan origination fees (if applicable- this is a negotiable item)
• Points (or loan discount fees) you pay to receive (buydown) a lower interest rate ( this is a negotiable item)
• Appraisal fee (generally paid upfront) Paid outside of closing.
• Credit report fee (generally paid upfront) Paid outside of closing.
• Private mortgage insurance premium
• Homeowners insurance premium for escrow (If being paid as part of the mortgage)
• Property tax escrow (If being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.)
• Recording fees for your deed of trust
• Property survey
• Home inspection fees (including home inspection, termite inspection, etc.)
• Notary public fees
• Proration for your share of utility bills and property taxes

What You Will Need to Bring to Your Closing

Please be prepared to bring the following items with you to closing:

• The Title company will need your homeowners insurance declaration of insurance commencing on the closing date
• Bring a cashier's check payable to yourself for the balance of funds necessary to close. Typically, this sum is not available until the day before the closing. If you would like, you can use the good faith estimate as a guideline and the title company will give you money back at the closing.
• Call all utilities and transfer them into your name prior to closing
• Proof of identity - Driver's license(s) or your Passport are acceptable forms of identification
• Power of Attorney (if applicable)
• Additional requirements that your mortgage company may have

Important Closing Documents to Retain

The following documents should be kept in a safe location after the closing of your new home:

• The Real Estate Settlement Procedures Act (RESPA) statement. Often called the HUD 1 statement, this document is an itemized list of all costs associated with your closing. It is recommended you retain this document for income tax purposes and when you sell your home.
• The Truth in Lending Statement summarizes the terms of your mortgage loan.
• The mortgage and the note (two pieces of paper) spell out the legal terms of your mortgage obligation and the agreed-upon interest rate and repayment terms.
• The deed. This document is the legal instrument used to transfer ownership of the property to you.
• Sworn affidavits to various statements by either the buyer or the seller. For example, the seller will often sign an affidavit stating the property is free of any liens.
• Addendums/riders are amendments to the sales contract that affect your rights. For example, if you buy a condominium, you may have a rider stating the condo association’s rules and restrictions.
• Homeowner Insurance and/or Home Warranty policies that provide a record and proof of your coverage.
• Your actual title insurance policy which you will receive 4 to 6 weeks following the closing.

It is recommended you retain these important documents, as some may be needed when you eventually sell your new home.

Congratulations! Now it’s time to ENJOY YOUR FIRST CLEVELAND NEW HOME!

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