When you purchase a home, the Closing Day is when the property title is transferred from the seller's name to the buyer's. On closing day, there is a lot going on, it can be a bit overwhelming. Having an idea of what to expect will help prepare you for what's about to unfold. Closing day can come days, weeks, or months after your offer is accepted and
finalized. It is the day you take physical and legal possession of your new home.
Here’s a breakdown of the important landmarks on closing day:
- Your lender will forward your mortgage funds to the sellers' lawyer
- You give your down payment to your lawyer and pay the relevant legal fees
- Your lawyer will work out any adjustments on closing day including prorated payments, fees, and whatever adjustments you may have agreed to with the seller.
- The Property title is transferred to your name, you collect the keys, and the property is yours
The one-time costs associated with buying a home are often more than people expect. Protect yourself against unexpected costs by planning for closing costs to be 1.5% - 4% of the purchase price.
Other one-time costs incurred when buying a home include
- Lawyers' fees
- Down payment
- Land Transfer Tax
- Home Inspection