Purchasing A Home Loan Closing and Funding

When the loan is approved by the underwriter and all final documentation has been secured, the loan is ready to close.
 
The loan money is placed in an escrow account by the lender so that it is available for the settlement. An escrow account is a special third-party account that holds money safely while the title is being transferred from the seller to the buyer.
 
A final good faith estimate of settlement costs is provided by the lender to the borrower to make sure there is full understanding of the various settlement costs associated with the loan. Closing costs often include such items as loan origination fees, credit reports, appraisal fees, inspection fees, title insurance, prepaid tax and insurance payments, discount points and recording fees.
 
At the time of settlement the escrow company presents all of the loan closing documents for the borrowers to sign, which is often done in the presence of a notary public. If a down payment or closing cost payment is required, the buyer will bring a cashier's check. This settlement process, called closing, is the final step before the transfer of money and keys occurs. The loan will normally close shortly after the loan documents have been signed. When this happens, you officially own your new home or property.