COSTS RELATED TO THE SALE OF YOUR HOME:
Mortgage Settlement:
Prior to the finalization, you'll authorize the Title Company or Attorney to determine the amount due on the closing day. This facilitates the Closing Company in drafting the necessary documents, and they will deduct the amount from your proceeds to settle your remaining mortgage.
Credit Lines & Equity:
Similar to the mortgage settlement, you'll need to grant permission to the closing company to access this data. Any outstanding amounts will be settled, and associated credit lines will be closed.
Prepayment Charges:
Sellers often assume the amount on their latest statement is the final amount owed. However, there might be a prepayment fee in your mortgage. Additionally, interest might be due based on the closing date.
Outstanding Taxes & Liens:
This underscores the significance of title verification before closing. It identifies any existing liens or overdue taxes on the title. These dues will also be settled on the closing day, with the closing company handling the payments using your proceeds.
Local Assessments:
These refer to specific charges like water, sewer, or other municipal improvements levied on the property. Typically, they need to be cleared, though in some instances, the buyer might assume them. If they're to be settled, the closing company will manage the payments from your proceeds.
