Mortgage settlement and closing is the final step in buying your home.  At the closing you will sign the mortgage and receive the title to your new home. Keep in mind, settlement can be confusing for first-time homebuyers. The more you know about closing, the better your chances for saving money at settlement time.

Your lender must give you a “Good Faith Estimate” before the settlement date. This will give you a detailed estimate of the costs and services for your loan. These will be the closing costs that you pay at settlement. Remember - the amounts listed on are only estimates. The final costs may vary.

Closing costs can be high. Typically, they will be about 3 to 5% of the price of your home. Some of these costs will vary depending on the loan type, the lender and your credit rating.

Don't go to closing unprepared. Take the time to understand the process in advance.

Mortgage Loan Closing Information

About the Real Estate Settlement Procedures Act by the U.S. Department of Housing and Urban Development

Buying Your Home: Settlement Costs and Information - information from the U.S. Department of Housing and Urban Development

What Happens at Closing from "Your Path to Homeownership" by Ginnie Mae

A Consumer's Guide to Mortgage Settlement Costs from the Federal Reserve Board

Steps in the Closing Process from Freddie Mac

Coming to Grips with Settlement - a publication by the Mortgage Bankers Association - (you will need Adobe Reader to view this file - download a free copy here)

The Closing Process - information from the Kansas City Regional Association of Realtors®