How to buy a home in Maine

What is a Real Estate “Closing”

A “closing” is where we meet with some or all of the following individuals: the Seller, the Seller’s agent, a representative from the lending institution and a representative from the title company, in order to transfer the property title to you. The purchase agreement or contract you signed describes the property, states the purchase price and terms, sets forth the method of payment, and usually names the date and place where the closing or actual transfer of the property title and keys will occur.

If financing the property, your lender will require you to sign a document, usually a promissory note, as evidence that you are personally responsible for repaying the loan. You will also sign a mortgage or deed of trust on the property as security to the lender for the loan. The mortgage or deed of trust gives the lender the right to sell the property if you fail to make the payments. Before you exchange these papers, the property may be surveyed, appraised, or inspected, and the ownership of title will be checked in county and court records.

At closing, you will be required to pay all fees and closing costs in the form of “guaranteed funds” such as a Cashier’s Check. Your agent or escrow officer will notify you of the exact amount at closing.

Closing costs are the various fees and charges you take on when you buy a home and obtain a mortgage. They also include various taxes and fees paid to the state and local government. Typical closing costs include:

Items payable in connection with the loan: These are the fees that lenders charge to process, approve and make the mortgage loan including: A loan origination fee; Discount points; Appraisal fee; Credit report fee; and Inspection fees.
Items required by the lender to be paid in advance: Accrued (accumulated) interest; Mortgage insurance premiums (MIP); and Hazard insurance premiums.
Escrow account deposits: These are deposits (limited by law) made by the borrower to set up an escrow account for paying: Taxes and/or insurance; plus Other items.
Title charges: Title charges may cover a variety of services performed by title companies and others.
Government recording and transfer charges: The borrower or the seller pays these fees, or divide them, depending upon the sale agreement, including: Legally recording the new deed and mortgage (line 1201). Property transfer taxes are set by state and/or local governments and may be collected whenever property changes hands or a mortgage loan is made. Charges for city, county and/or state tax stamps.
Additional settlement charges: These include items such as: A property survey; Termite inspection; Lead based paint inspection; and Radon testing.

What is an Escrow Account?

An escrow account is a neutral depository held by your lender for funds that will be used to pay expenses incurred by the property, such as taxes, assessments, property insurance, or mortgage insurance premiums which fall due in the future. You will pay one-twelfth of the annual amount of these bills each month with your regular mortgage payment. When the bills fall due the lender pays them from the special account. At closing, it may be necessary to pay enough into the account to cover these amounts for several months so that funds will be available to pay the bills as they fall due.

Moving

CONGRATULATIONS! You have closed on your new home and now you are ready to move! The next few pages contain tips and checklists so that your move is as organized and effortless as possible. Think about your move as a series of small projects that you can begin while your home is under contract. Your move will progress as your contract and closing progress. That way, when the day comes to physically move your belongings, most of the details will be taken care of.

Keep detailed records – some moving expenses are tax deductible!
Keep detailed records of all moving expenses if your move is job related. Many expenses, including house-hunting trips, are tax deductible. If your move is 35 miles or more from your home, you can deduct your family’s travel expenses, including meals and lodging; the cost of transporting furniture, other household goods and personal belongings; food and hotel bills for up to 30 days in the new city if you have to wait to move into your new home; and the costs associated with selling your old home or leasing your new home.

Note: There is a ceiling on deductions which is outlined in detail in the IRS’s Publication 521, “Tax Information on Moving Expenses,” available free form the IRS offices.

Welcome Home!

Back..

Why Keller Williams Realty?

There is a reason more and more agents are making the change to Keller Williams Realty. Here's why it matters to you:

Knowledge - Powerful curriculum through Keller Williams University keeps us ahead of trends, tools and advancements in the real estate industry.

Speed - Leading-edge technology solutions accelerate our efficiency and productivity.

Teamwork - Unlike other real estate companies, Keller Williams Realty was designed to reward agents for working together, to serve clients better.

Reliability - Keller Williams Realty was founded on the principles of trust and honesty, emphasizing the importance of having the integrity to do the right thing and always putting the customer’s needs first.

Success - Keller Williams Realty is the fastest growing real estate company in North America.

When you offer a superior level of service, the word spreads fast.

As part of the Keller Williams Realty team, we look forward to providing you with a phenomenal real estate experience! maine real estate closing