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Step 12:  Closing Your Sale

Once it's done, the closing is the fun part.  You home is sold and you get your equity.  But it takes some work to make it happen.  

Before a closing can take place many things have to be taken care of:

The loan has to be approved and funded.

The title work or abstracting has to be done and attorney has to read the title and issue a title opinion.  Then any title problem have to be taken care of before a Title Insurance Policy can be issued. For more information on title insurance, see an article on Title Insurance.

The buyer has to arrange for homeowner's insurance.

A survey needs to be done, showing no problems such as encroachments.

All of the taxes have to be checked.  Unpaid taxes have to be paid and the taxes for the current year have to be prorated.

All the bills for inspections, repairs, etc., have to be given to the closing company so they can be included in the closing statement.

Once all of that is done, the closing company should give you a copy of the Closing or Settlement Statement (often the HUD-1 form is used) at least 24 hours before the closing, as the law requires.  Unfortunately, if it's a "rush closing", that doesn't always happen.  No matter when you get the statement, you and the buyer should both review it for accuracy.

Then it's finally time for closing and possession!

 

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