Getting to the Closing Table

You've decided you want to buy a home -- condo, single family, multifamily -- the process is the same with some variations.

We start by searching for the right home. When that is found, we write an offer and if the price, terms and conditions are acceptable to all parties, the offer is signed and becomes a contract. We usually have a house inspection by a professional inspector and if the inspection is good, we move forward with the transaction. The contract has been sent to the bank, the bank orders an appraisal, puts together all financial information and produces a commitment to loan the money.

A few days before closing, the buyers' attorney will tell the buyers how much money to bring to the closing. This should not come as a surprise to the buyers as they will have been given a "Good Faith Estimate" by their lender at the beginning of the loan process. On the day of closing, the buyers and sellers meet at the closing table. Typically, what happens in this area of Vermont is we meet at the buyers' attorney's office. The buyers' attorney is representing the lending institution but typically acts as a representative of the buyer also. The sellers can hire their attorney to be present but the attorney is not usually there.

The attorney goes over the HUD Settlement statement with the buyers and sellers to make sure the money that is exchanging hands is correct. There is a buyers' side and a sellers' side. The bottom line on the buyers' side is the amount they have brought to closing. The bottom line for the sellers is the amount they are taking home after the closing is over.

After everyone agrees on the HUD Settlement statement, the buyers start to sign a pile of closing papers with their attorney. They will sign the note that promises to pay back the loan. There are many disclosures that the bank will provide. The buyers will also either give over a bank check for the amount they are to bring to closing unless the money has already been wired into the attorney's trust account. After all the paperwork has been signed, the sellers produce the deed to the property that has been written by the sellers' attorney. It is signed and handed over to the new buyers.

Keys are given from sellers to buyers and now we have new homeowners! The process takes about one hour barring any complications. At the end, everyone is happy (well, usually!) and we REALTORS feel great because we were able to facilitate the buyers and sellers coming together in a win-win transaction. It is really an honor to be a part of such an important part of people's lives!