Closing is the culmination of the offering/buying process. Closing is the formal meeting where ownership of the property is transferred from the seller to the buyer.  Also at this time, the buyer’s loan is finalized, so technically there are two closings. The meeting is usually attended by the buyer and seller, their respective Real Estate Professionals, the lender’s agent, and the closing agent (if different from the lending agent).

The closing agent will review the settlement with both the purchaser and the seller, along with evidence that any legal requirements, such as insurance and inspections, have been met. If you wish, hire a real estate lawyer to represent you at closing. The attorney fee will be paid separately by you. 

What are some of the key documents signed at the closing?

Buyers should come prepared to sign many papers, including

• A promissory note promising to pay in full the loan and interest.
• A mortgage document which secures the promissory note by giving the lender an interest in the property and the right to foreclose if the mortgage payments aren't made.
• A truth in lending form which requires your lender to inform you of the annual percentage rate 
• A typed loan application form.
• A payment letter telling the buyer the amount of the first payment and when it is due.
• An affidavit of buyer's names 

The seller can expect to sign the following documents:

• The deed transferring title in the real estate from the seller to the buyer.
• A bill of sale transferring ownership of any personal property that may be included in the sale of the real estate.
• An affidavit of title in which the seller states that he or she has the legal right to sell the real estate and that there are no liens or encumbrances (judgments, mortgages, or taxes owed) on the property.
• An affidavit as to mechanic's liens and possession 
• If new construction, an occupancy certificate indicating that the new home complies with the Owensboro housing code.

Both buyer and seller may also sign:

• An affidavit specifying the purchase price and indicating the source of the purchase price. (This affidavit assures the lender that the buyer has not received any undisclosed loans from the seller that could negatively affect the buyer's ability to repay the lender's loan.)
• A RESPA form developed by the federal Department of Housing and Urban Development and sometimes a separate closing statement, specifying all costs associated with the transaction.