The excitement of finally finishing the process of buying your new home! Through all the stress of looking and viewing different homes, you finally come across one you love and seal the deal. With the closing though, you are sometimes confronted with terms from your REALTOR® that are foreign to you. These common expressions and terminology used by your Realtor are typically always and frequently used on closing day, so by being familiar with them you will be able to proceed through the process with ease.
Disbursement means the allocation of funds to the appropriate parties, such as the seller. Your lawyer usually undertakes this process.
Possession is the moment on your closing day when you are legally able to obtain possession of your new home. This is typically when your Realtor or lawyer hands you the keys.
Title is a legal document that identifies the property and its owner.
Closing costs are the expenses, excluding the selling cost of the property, that are due on closing day. These include those such as legal fees, reimbursements for pre-paid utilities, insurance, and taxes.
Closing adjustments are the expenses pre-paid by the seller that need to be reimbursed on closing.
Title Insurance is an insurance policy that protects residential or commercial property owners and their lenders against losses related to the property’s title or ownership. Title insurance protects you over unknown title defects, existing liens against the property’s title, encroachment issues, title fraud, and errors in surveys and public records.
By understanding these terms, you will be able to proceed with your closing deal much more efficiently than other wise, because they really are the foundation to closing the deal on your new home. Don’t be afraid to ask your Realtor about anything that you are confused on while going through the process, as they are there to be your support and to help the process go as smoothly as possible for you.