Closing a Real Estate Purchase in Indiana
If you are reading this because you are about to close on a property, congratulations! You have put in the hard work and now it is time to close the purchase. The closing process varies from state to state, but in Indiana the closing process is done in a face-to-face meeting. We will go over who attends the meeting, but first we will go over the documents.
The buyer will be signing a lot of documents at the closing. These will include, but are not limited to:
• The HUD 1 or Uniform Settlement Statement. It adds your loan amount and closing costs and deducts your down payment to arrive at the amount of cash you will need to close. This document is required by law. The buyer should receive a copy of the HUD statement at least one business day prior to your closing. Itemized costs may include:
• Loan origination fee
• Appraisal fee
• Settlement agent’s fee
• Survey fee
• Fee to record the mortgage
• Fee to record the deed
• VA funding fee, if applicable
• Credit report fee
• Courier fees
• Tax service fee
• Flood certification fee
• Document preparation fees
• Prepaid items such as the homeowner’s insurance premium, property taxes, interest on buyer’s loan from day of closing to the end of the month
• A survey
• A mortgage
• A note
• A Federal Truth-in-Lending Disclosure Statement
• A name affidavit
• A statement that neither your credit nor your job situation has changed since you applied for your loan
• An IRS-required form allowing the buyer to deduct mortgage loan interest payments
• A check for the down payment and closing costs
• Endorsement of the mortgage from the buyer’s lender
Fees will vary depending on who is conducting the services. To get an idea for the average closing costs in Indiana, check out this guide by finder.com
In Indiana, closing is done in a face-to-face meeting
In Indiana, closing is done face-to-face, meaning the buyer and seller will meet in-person to complete the sale. A face-to-face closing involves the resolution of two issues: the fulfillment of the sales contract, and second, the buyer’s loan is finalized. The mortgage lender will also disburse the loan funds at this meeting. The meeting may be conducted at some mutually agreed location, often the title company or lender’s office. A representative of the lender or the title company typically presides and will lead a review of various documents including the title insurance policy, surveys, and other documents. The necessary documents must be recorded in the correct order to ensure continuity of title. Besides the lender’s representative, expect the following people to attend:
• The buyer and seller
• The realtor or broker for each party
• A representative of the insurance company.
• Representatives of the buyer’s lending institution
• Attorneys for either party
The buyer may or may not take possession of the home on the closing day; those details will be specified in the purchase agreement. In any case, be sure to celebrate on a successful closing!
The closing process is tedious, but doing it right is worth the work
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