The amount of money involved in a real estate purchase is significant. The transaction can involve complicated paperwork. The last step in the process for a buyer and a seller is the closing. When financing has been promised, a lender, such as a bank, will participate in the closing. It can be beneficial for the buyer, seller, and lender to be represented by experienced real estate attorneys at a bank closing. Queens bank closing lawyer Shane D. Scott can advise you on what to expect and handle the process on your behalf.Bank Closings
The closing is a meeting at which money is exchanged between parties to a real estate transaction, and the deed and other legal documents are provided to the buyer. It involves the official recording of the sale. Both the buyer and the seller may need to review, authorize, and sign numerous documents. At the closing, once all obligations are satisfied, the buyer receives the deed, which transfers ownership of the property from the seller to the buyer; the buyer becomes the official property owner.
The closing can take place at the seller’s attorney’s office, the bank’s attorney’s office, a real estate agent’s office, or another place. Usually, the buyer, the seller, the bank or other lender, the real estate broker, and the managing agent or title closer are present at the closing. Certain documents are important to the closing and may be required shortly before, during, or soon after the closing. A bank closing attorney in Queens can help ensure that you gather the necessary documents.Loan Estimates
The law requires a lender to be truthful about the loan that it is providing. In the past, the Truth in Lending Act (TILA) Statement was a form mandated by the federal government. It disclosed the terms of the mortgage loan and the costs of financing the home. Additionally, the Department of Housing and Urban Development required a conventional mortgage lender to provide a Real Estate Settlement Procedures Act (RESPA) Statement. This form allowed the buyer to be informed about all the settlement costs.
In 2015, the TILA disclosure was replaced with a Loan Estimate and Closing Disclosure for most closed-end consumer mortgages secured by real property or a cooperative unit. Reverse mortgages, mortgages secured by a dwelling not attached to real property, and equity lines of credit must still use the TILA and RESPA disclosures. In the Closing Disclosure, truthful disclosures must be made regarding the amount of the loan, payment amounts, due dates and late charges, prepayment penalties, the annual percentage rate, and service or application fees. There are certain things that may change from the Loan Estimate that was provided earlier to the Closing Disclosure that is provided at the closing; your attorney can make sure that there were no improper changes. This document should be provided three days before the closing to give your Queens bank closing attorney and you time to review it.The Mortgage
The mortgage, which is also called a deed of trust or a security instrument, represents the borrower’s promise to repay the loan secured by the home. It is the document that permits the lender to foreclose on the property and take possession if a homeowner does not make their mortgage payments.
In addition to the mortgage, there is a promissory note, in which the borrower or the buyer of the property agrees to repay the mortgage according to its terms. The buyer signs the promissory note at the closing, and the bank or other lender retains the note until all the obligations are fulfilled. The note includes the amount of money borrowed, the interest rate and the type of interest rate, payment due dates, how long repayment will take, where payments should be sent, and the consequences of making a late payment.Closing Costs
Prior to the closing, certified checks will be prepared for the sale. These will be exchanged at the closing, along with certain documentation. Each sale is different; there may be additional closing costs when the property at issue is a condo or co-op. Other costs can include flip tax, filing fees, attorney fees, and maintenance adjustment and appraisal. When financing is obtained, a loan origination fee and a UCC-1 filing fee must be paid. Sometimes prepaid mortgage interest needs to be paid.
The closing statement organizes information about how money was applied at the real estate closing. It will include any debits or credits. It also includes the real property transfer tax, and it includes a mansion tax if the property is worth more than $1 million. During the closing, many checks are exchanged, and the closing statement provides a clear understanding of which exchanges took place.Retain a Bank Closing Lawyer in Queens
If you need to finalize a real estate transaction, you should consult the Law Office of Shane D. Scott. We represent buyers and sellers throughout Queens and the surrounding areas. Call us at (800) 230-0744 or complete our online form.