• The real estate closing process can be an exciting time for both the buyer and the seller. Both parties should take the time to familiarize themselves with some common terms and definitions associated with real estate closings in order to make sure that they agree with and understand the process as well as the terms of the sales contract.
  
  

Closing Date

• The closing is the date in which the transfer of ownership of the property from the seller to the buyer is scheduled to be completed. Closing dates are typically negotiated by the agents representing the buyer and the seller.
  
  

Good Faith Estimate

• A good faith estimate is an estimate of all loan fees and closing costs associated with the purchase of a home and is given to the buyer by the lender in order to help the lender accurately determine the final cost of purchase.
  
  

Closing Costs

• Closing costs are fees typically paid by the buyer. These include loan fees and fees for property transfer of ownership documents, government filing fees, broker fees, and other related costs. The buyer usually has the option of paying all of these fees out of pocket or rolling the fees into the balance of his loan.
  
  

Private Mortgage Insurance

• Private mortgage insurance is usually required for buyers who make less than a 20% down payment towards the purchase of a home. This insurance is designed to provide financial protection for the lender in the event that the buyer defaults on the loan and allows buyers the opportunity to obtain loans that they would not otherwise be able to qualify for.
  
  

Deed

• The deed or property title is a legal document containing information about a real estate property and listing the legal owner of the property. This document is transferred from seller to buyer during the real estate closing process.