Step 9: Closing

The closing process, which in different parts of the country is also known as "settlement" or "escrow," is increasingly computerized and automated. In many cases, buyers and sellers don't need to attend a specific event; signed paperwork can be sent to the closing agent via overnight delivery.

In practice, closings bring together a variety of parties who are part of the "transaction" process. For example, while the history of property ownership has been checked, it's possible that the records contain errors, unrecorded claims or flaws in the review itself, thus title insurance is necessary. At closing, transfer taxes must be paid and other claims must also be settled (including closing costs, legal fees and adjustments). In most transactions, the closing agent also completes the paperwork needed to record the loan.

The result of escrow is that title to the property is transferred from seller to buyer. The buyer receives the keys and the seller receives payment for the home. From the amount credited to the seller, the closing agent subtracts money to pay off the existing mortgage and other transaction costs. Deeds, loan papers, and other documents are prepared, signed and filed with local property record offices.

What you need to do:
Follow the time line of your contract to the letter.  You must studiously remove all of your contingencies, choose your loan, your lender, your insurance policies, your inspections, bring your money to escrow, and sign your loan docs.

Before closing, buyers typically have a final opportunity to walk through the property to assure that its condition has not materially changed since the sale agreement was signed.
When escrow closes, all papers which have been prepared by closing agents, title companies, lenders and lawyers and, once signed by all parties are reviewed to make sure they reflect the sale agreement and all parties to the transaction have their interests properly handled. For instance, buyers get the title to the property, lenders have their loans recorded in the public records and state governments collect their transfer taxes.

Article adapted from Information Provided By:http://www.realtor.com/home-finance/buyers-basics/guide-how-to-buy-a-home-9.aspx