Page 15 - Butterfly Realty LLC

• Disburse Funds to Appropriate Parties- The closing of your home involves disbursing
the closing funds. The lender will wire the loan amount proceeds to the title company. As the
buyer, you will also need to send your portion of the closing funds to the title company. Once all
funds have been disbursed to the appropriates parties, namely the seller, the transaction is
deemed closed and settled.

Closing

One of the documents worth calling attention to is the Closing Disclosure. It should look somewhat
familiar. It is very similar to the first documents you received in the mortgage loan process, the Loan
Estimate. The Loan Estimate gave you the expected costs. The Closing Disclosure confirms those costs. In
fact, the two should be very close in values. Laws prevent them from differing too much.

Three Day Review Period

You have the right to review the Closing Disclosure three days prior to the closing. By law, it will be sent
to you from the lender for your review and signature. This period gives you a chance to review all of the
terms of the loan. In most cases, you’ll compare the Loan Estimate to the Closing Disclosure.

Most of the time, everything goes as planned. Small things in the loan docs are allowed to change, like
typos. However, bigger changes reset the three-day review period. The 3-day countdown would start
over.

Final Walk Through

You have the right to a final walk-through of property 24 hours before your closing. You can make sure
the seller has vacated property. You can make sure any contractually stipulated repairs are complete.

Closing

The closing is the moment we have been working towards. It’s time to sign lots of documents and
complete your purchase. Some documents are between you and the lender. Other documents are
between you and the seller.

Please be prepared to bring two official forms of identification such as a driver's license and passport to
the closing. The attorney office will provide you all acceptable forms of identification.

If closing costs are not rolled into the loan amount, talk to your loan officer about how you will transfer
funds either electronically or via cashier’s check. Closing cost include settlement fees (the cost of doing
the loan) plus any prepaid expenses (put in an escrow account) for homeowner’s insurance, mortgage
insurance and taxes.