Closing/Settlement

Step Five—Prepare for Closing

Once you have ratified your real estate sales contract, provide it to your mortgage lender in a timely manner so your settlement stays on track.

The "Walk-Thru"

On the morning of your closing, you will have a "walk-thru" of the residence you are buying. You will be able to check to see that all repairs listed in your contract were actually completed. You will also check to see that all the items included in the sale of your home are there and in working order. At the settlement, you will sign your loan documents including the Note, Deed of Trust and the Truth-in-Lending Disclosure.

Closing Costs

You will also need to pay customary closing costs at this time. These include, but are not limited to:

• Settlement/attorney fee
• Title search
• Title insurance—the lender’s policy and the homeowner's policy
• Recording fees
• Transfer taxes
• Survey (if applicable)
• Termite inspection
• Origination fee (if applicable)
• Discount points (if applicable)
• Appraisal fee (paid at the time of application)
• Escrows (for real estate taxes and hazard insurance)
• Hazard insurance

Depending on the terms of your contract, the seller may be responsible for some of these costs.

Note: Your agent will go over a HUD-1 settlement statement with you that gives you all the details of the transaction. Closing costs vary by state and county. Once you have determined in which county you plan to buy a home and the loan amount you need, you can contact a Navy Federal Call Center Account Specialist at 1-888-842-NFCU (6328), international numbers, M-F, 8:00 am to 11:00 pm; Sat, 9:30 am to 11:00 pm; Sun, 10:00 am to 6:30 pm (all times Eastern), to give you an estimate of your closing costs.

THE NEXT STEP: For additional information, prequalification or to make an application for a mortgage loan, click here or call 1-888-842-NFCU (6328), international numbers, M—F, 8:00 am to 11:00 pm; Sat, 9:30 am to 11:00 pm; Sun, 10:00 am to 6:30 pm (all times Eastern).

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