What Happens at Closing?

The Process of "Closing"

Mortgage loans are generally "closed" by a third party called a "closing agent," whose function is to coordinate and distribute all paperwork and funds according to instructions mutually agreed upon by the buyer and the seller. As a result, the "closing" process on a home mortgage involves "settlement" of all conditions of the sale and "collection and disbursal" of all funds on behalf of both buyer and seller.

The closing agent ensures that the instructions of all parties and the lender are fulfilled and that ownership of the property is transferred properly from the seller to the purchaser. A nominal fee, based on the purchase price of the property, is charged by the agent's company to perform this service.

Who may "close" a loan?

In the State of Georgia, the closing agent must be an attorney who represents the lender. Closing a real estate transaction requires a tremendous amount of technical knowledge and practical experience. This is why loans are closed by an attorney.

The Closing Agent:

• Places the order for title insurance.

• Receives funds from the buyer, seller and/or lender.

• Prorates and pays property insurance, taxes, rents, etc.

• Disburses funds for title insurance, recording fees, real estate commissions, lien clearance, etc.

• Prepares a final statement for each party, indicating amounts to be disbursed for services and any further amounts necessary to close the sale.

• Prepares and records deed and loan documents, delivers the deed to the buyer, loan documents to the lender and funds to the seller.

Note: Payment of closing agents fees can vary based on terms of purchase and sales agreement and permits of some specific loan types.

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E-mail Mike at mike@mike-robinson.com	Mike Robinson, REALTOR® CRS, GRI, CSP, ABR, CRP MIKE ROBINSON, INC. Keller Williams Realty Atlanta Partners 1200 Commerce Drive, Suite 110 Peachtree City, Georgia 30269 Office: 770-632-1112 Mobile: 770-314-5138 Fax: 770-632-1117	Each  office is independently owned and operated.

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Revised: 01/19/12.