| 11. The Closing Process Homeowners and Flood Insurance
The Estimated Closing Cost Settlement Statement (HUD-1)
Final Loan Approval
Signing Your Loan Documents
Funds to Close
Funding the Loan
Recording the Deeds
Change the Utilities to Your Name Homeowners and Flood Insurance
You will need to give your insurance information to the title company as soon as possible before the closing. They can't close without it and lenders will not draw closing loan documents without it. Give your loan officer your insurance agent's name and phone number and they will be able to help coordinate things. You must obtain a signed original insurance binder from your agent, which you must bring to the closing. Remember to inquire if your home is in a flood zone and to obtain flood insurance as well. For more detailed information about insurance click here. The Estimated Closing Cost Settlement Statement (HUD-1)
Prior to closing you should get (or ask for) the estimated closing cost settlement statement from the title company. Look at the buyer charges and make sure they look correct. If you have any questions, ask your agent, the title agent or your loan officer to explain them. Many times the HUD-1 is not ready until shortly before the closing for various reasons. There is no need to worry. You can’t close without this statement and all parties will review the statement at the closing. If there are any mistakes they can be easily corrected on the spot. Final Loan Approval
Your loan is approved. However, sometimes there are conditions that need to be cleared up before the lender funds the loan. They may want another explanation letter for something or they may want a correction on a document. Whatever the case, the title agent, the mortgage broker, or your agent will work to solve these conditions. They are usually just minor items that need attention, but talk to your agent or mortgage broker if you have any questions or concerns. Signing Your Loan Documents
Your lender will send the closing documents to the title company for you to sign. Loan docs spell out all of the terms and conditions of the loan such as the interest rate, term of the loan, loan points, and your actual payment. Once the docs are signed they are sent back to the lender. Funds to Close
Before the closing you will usually have received a copy of your HUD-1 closing statement that will show the balance you owe to close. The title agent will instruct you to bring in the balance of your down payment and closing costs. You will be asked to bring in a cashier's check or to wire the money directly to their account. Funding the Loan
At this point the lender has already wired the funds into the title company’s bank account. Once everything has been signed and sealed the title company will disburse checks to all the interested parties to the transaction (seller, loan officer and your real estate agent). Recording the Deeds
The title company will take the deeds to the county recorder to record all of the documents. You will receive copies of all the documents you signed at the closing. However, the recorded Warranty Deed along with your title insurance policy will be mailed to you several weeks after the closing. If you do not receive these documents be sure to call and ask what happened. Change the Utilities to Your Name
Don't forget to change the utilities in to your name. Usually the seller needs to cancel the utilities before the utility companies will allow you to put them in your name. Have your agent remind the seller's agent to remind the seller. I usually recommend making the changes 2 or 3 days before the actual close. Your agent should have all of the utility company phone numbers. | 
