Mortgage settlement is also referred to as closing. It is when the home buyer, seller, title services company representative, and lender meet to change hands of the property and funds legally. There are also many fees that are associated with closing known as closing costs. What exactly these fees are and who is expected to pay them can be quite confusing since it sometimes varies depending on the situation. Most of the closing costs are going to fall on the buyer, however there is some room for negotiation when the initial offer on the home is made. Knowing what your closing costs are going into closing is very important to make sure you have a successful settlement. Using title services from a reputable title services company can help make the closing process run more smoothly and successfully.
Individual Closing Costs
Closing costs refer to a variety of expenses above the purchase price of the property to include fees for an attorney, a title search, title insurance, taxes, lender costs, and upfront housing costs like insurance. When it comes to buying a house, anytime someone performs an administrative task there is typically a fee associated with it. Often times, the buyer is going to pay any fees relating to their mortgage loan, and the seller usually pays the agent’s commissions and other fees associated with the transfer of the property.
As the buyer, three days before your scheduled closing you should receive your closing disclosure from your lender which will contain the final details about your loan and closing costs. Closing costs can be broken down into several categories including lender fees, title fees, prepaid costs (example: Escrows), and attorney’s fees. Lender fees can either be wrapped in an “origination fee”, or they can be broken down into individual fees like courier fees, appraisal costs, administrative fees, processing fees, a credit check, transfer taxes, a flood certification, and underwriting fees. Title fees include the costs associated with a title search, title insurance, and settlement services. Prepaid costs in many cases involve paying one year of homeowner’s insurance plus two months of homeowner’s insurance premiums to be kept for the next bill due. Typically you are also required to pay two to six months of property taxes depending on when the tax bill is due.
How to Prepare
Before you go to settlement, there are a few things you’ll probably want to do. The first is to review the closing disclosure which outlines the terms of your loan including final closing costs, and any additional outstanding charges of fees. Once you have signed the closing disclosure, there is a three-day waiting period before you can sign the mortgage loan documents.
It is also a good idea to do a final walk through of the property to verify that all agreed upon repairs were made, that the seller has vacated the property, and that the home is in the condition you expected. The time to do a walkthrough is almost always dictated by the contract. It is recommended that you do it 24 hours before going to settlement. If you notice any significant problems, you will have time to get further inspections done or work performed prior to closing. You should also make arrangements to transfer the utilities in your name effective the day of closing.
You’ll also have to bring with you a cashier’s check or wire funds to pay closing costs and escrow items, and a form of government-issued identification, This can include a driver’s license and passports. Usually, only one type of ID is required, although there are some cases in which two forms are required.
Knowing what to expect when you walk into the settlement is the best way to be prepared and to help ensure that everything runs smoothly. You might want to just walk away with your new set of house keys, but you also need to make sure that everything during settlements goes as expected. Mathis Title Company will help you prepare for the entire closing process from top to bottom.
What to Expect During Closing
For buyers, the settlement involves a lot of paperwork. You will have to sign many documents, a primary one being a settlement sheet, which explains the flow of all funds- in and out. You will be presented with a loan estimate, closing disclosure, the initial escrow statement, deed of trust, mortgage Note, and other documents required by state law or by your lender. Signing all of these documents is what takes care of the legal aspect of the settlement. Finally, the keys to the home are exchanged.
For more information about closing costs please reach out to Mathis Title Company at (703)-865-7880.
Once you have made an offer on the house and have paid an earnest money deposit, the next step is going to be shopping for a mortgage lender through the title escrow process. When you’re applying for a mortgage, the lender is going to order an appraisal on the property. This appraisal is necessary to protect the lender and ensure that the loaned amount is appropriate based on the value of the property being purchased. They want to make sure that if you are unable to pay off the mortgage, they can recoup all of their losses from the resale of the property. If the appraisal does not match the agreed upon price of the property, two things can happen. First if the appraisal comes in above that price, you as the buyer will benefit from the home having more equity than you originally thought. Secondly, if the appraisal is lower than the price, then renegotiation may be necessary. Your lender can not approve the loan unless you either lower the price with the seller or agree to make up the difference by paying cash down.
Before everything is completed and you get the keys to your new house, you will have one final walk-through of the house. You’re looking to verify that the condition of the home hasn’t changed since the seller accepted your offer. This can include making sure all agreed upon repairs have been made, and nothing has been removed that was supposed to stay – like appliances. Then at title closing, you will be presented with many documents that you have to sign. These final documents can include things like confirming mortgage rates, 
Buying a home is an important financial decision. During the purchasing process, many new home buyers have a flood of questions running through their minds like, “Am I choosing the right house?”, “ What other expenses should I be considering?”, “ What types of Insurance coverages do I need?” Owner’s title insurance is a step in the right direction for individuals looking to confidently buy their new homes. Mathis Title is here to provide you the answers to some of the most frequently asked questions regarding 
A lender’s policy protects the lender if a problem should arise with the title. This policy is typically mandated in order to receive a mortgage loan and does not protect the buyer’s equity on their purchased home. Consult with Mathis Title to learn more about how this policy is handled in your area.
Errors in public records: Unfortunately, mistakes are easy to make and a simple clerical or filing error can affect the deed or survey of your property. A title insurance underwriter will pay close attention to try and catch any of these errors.
When you purchase a property, you may unknowingly be taking on a former mortgage, lien or non-financial claim (like restrictions or covenants limiting the use of a property). A title insurance underwriter will do their best to ensure you are purchasing the property without this additional encumbrance.
Mechanics liens are a legal claim against a property that has been remodeled or improved. In essence, mechanics liens are legal documents that reserve the rights of the filer to seek unpaid compensation. Typically, 
For example, a subcontractor has placed a mechanics lien on a house with the intent to receive payment for 5,000 of work. The property the mechanics lien is on is being sold for 100,000. The title company will take the 100,000 from the buyer and then deliver 95,000 to the seller. The title company would then pay the 5,000 dollars to the lien holder.