The escrow agent conducts the closing and is often affiliated with the title insurance company. The escrow agent prepares a closing statement that outlines what the required funds are, who’s paying and where the funds are going. They will not disburse funds until they can guarantee that the above noted items have been taken care of. Closing costs usually run between 3-8% of the purchase price.
Utilities – Water, gas and electric meters will be read on the day of closing and the seller will owe for the utility usage up until that day.
Service Contracts – If you are taking over any service contracts from the seller, you will owe the seller for the unused portion of those contracts that have been pre-paid. These could include pest control, pool and/or lawn services, home maintenance contracts, etc.
The Check – Your closing agent should tell you how much you need to bring to closing. Personal checks are not accepted, so bring a cashier’s check.
Home Warranty – This will cover the repair or replacement costs in case items such as appliances break down after you purchase the home. The peace of mind is worth the expense.