Mortgage Lending Experts Miami Florida. A&D Mortgage has successfully been providing residential and commercial loans for borrowers in Miami, Broward and Palm Beach counties, Florida. Whether our borrower is a South Florida native, a transplant, or a Foreign National we have the right program to fit virtually everyone.
What Happens at Closing?
The property is officially transferred from the seller to you at “Closing”.
At closing, the ownership of the property is officially transferred from the seller to you. Closing can take anywhere from 1-hour to several depending on contingency clauses in the purchase offer or complications that sometimes arise.
Most paperwork in closing or settlement is done by title companies and attorneys and real estate professionals. You may or may not be involved in some of the closing activities; it depends on who you are working with.
Prior to closing you should have a final inspection, or “walk-through” to insure nothing has changed to the home prior to closing and to insure requested repairs were performed, if applicable.
In most states the settlement is completed by a title company or escrow firm in which you forward all materials and information plus the appropriate funds needed to close so the firm can make the necessary disbursement. At closing the seller is given their funds and then the keys to the home are given to you.
What are Statutory Costs?
These are expenses you have to pay to state and local governments, even if you paid cash for the house and didn’t need a mortgage:
- Transfer Taxes– Required by some localities to transfer the title and deed from the seller to the buyer.
- Deed Recording Fees– To pay for the County Clerk to record the deed and mortgage, and to change the property tax billing.
- Pro-Rated Taxes– Such as school taxes and municipal taxes may need to be split between the buyer and the seller since they are due at different times of the year. For example, if taxes are due in October and you close in August, you would owe taxes for 2-months, and the seller would owe for the other 10-months. Pro-rated taxes are usually paid based on the number of days, not months of ownership.
- State & Local Fees– Other state and local mortgage taxes and fees may apply.
What are Third-Party Costs?
There may be expenses paid to others like inspectors or insurance firms:
- Title Search Costs– Usually your attorney or title company will perform or will arrange for the title search to ensure there are no obstacles such as liens or lawsuits regarding the property. Or you may work with a title company to verify a clear property title.
- Homeowner’s Insurance– Lenders require you prepay the first year’s premium for homeowners insurance, sometimes called hazard insurance. This is commonly done at closing and is part of your closing costs.
- Real Estate Agent’s Sales Commission– The seller pays the real estate agent’s commission, and if one agent lists the property and another sells it, the commission is usually split. The commission is negotiable between the seller and the agent.