Taking ownership at the closing
After you have had a succes
sful home search, identified a home that you wish to purchase, and have successfully negotiated a contract to meet your needs, it's time to get ready for taking the keys to your new home. Before you enter your home for the first time as a homeowner, you will need to go through a process called
closing. During the closing process, in a state of South Carolina and least, you will usually meet in an attorney's office to sign papers to transfer ownership of the property to you.
As a buyer, you are free to select your attorney to do your closing. South Carolina does require that an attorney be involved; but, unlike many states, one attorney, rather than two or more, can, and usually does, manage the whole closing. An attorney South Carolina who is a closing attorney will not solely represent your interests, since, as settlement /closing agent, he or she will also be representing the seller, the lender and others as well. (In South Carolina the attorney is hired by the buyer but because the attorney represents more than one party in the transaction, should a dispute arise later, the attorney will represent no one in that dispute.)
At closing you will review the closing statement or HUD 1 which is, in essence, a balance sheet which describes how funds will be transferred between parties. It is an important statement so you will need to understand how it works. Below is a detailed explanation for the various parts of the HUD 1. The attorney is available during closing to answer specific questions.
After you review the HUD 1, you and the seller will go through and sign several documents transferring ownership. 
For most people the closing process is not stressful and in many ways is a relief after days of waiting for the closing. Most closings in South Carolina take about an hour to an hour and a half. At the conclusion of the closing, you will receive your keys to the home.
Delays are possible
Closing times are never really all that fixed. The primary things that push closing past the set date/time are:
- completing the loan by the lender (appraisals get delayed/title searches get delayed)
- getting the cooperation of the current lender for pay-off info
- cooperation of the HOA in sending HOA balances
- getting the cooperation of the seller in completion of repairs
About 10% to 20% of closings get pushed back either several hours or a day or two. The good news is that very few are ever delayed more than a day or two.
Also, minor closing "glitches" are the norm rather than the exception. When they happen, they cause some stress but seldom do they do more than delay a closing a short while. There is a lot to coordinate for a closing. I once saw a report that analyzed how many people it took to close a home - over 50 if you include everyone at all levels. That is amazing - and a lot of cooperation.
Your closing costs as the buyer (typical)
Down paymentLoan originationPoints, or loan discount fees, which you pay to receive a lower interest rateHome inspectionAppraisalCredit reportPrivate mortgage insurance premiumInsurance escrow for homeowner’s insurance, if being paid as part of the mortgageProperty tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.Deed recordingTitle insurance policy premiumsLand surveyNotary fees / Attorney feesProrations for your share of costs, such as utility bills and property taxes
Your closing statement (HUD 1)
For many people getting ready to close on a new home can be a very stressful experience. Some of the stress comes from not knowing what to expect at closing. Fortunately, in the state of South Carolina, the closing process is relatively simple and pain-free. An attorney 
is involved to assist in making sure everyone understands the whole process and to make sure all the "i"s are dotted and the "t"s are crossed as they should be.
While a HUD 1 should be done at least 24 hours prior to closing so everyone concerned has the opportunity to review it for accuracy, often it is not available until immediately before or at closing. This document is very important because it summarized the costs of closing and the distribution of funds at closing.
Most often it is on two pages with the front page summarizing the back page. It includes two columns – one for the seller and one for the buyer. At closing, the attorney will explain any questions that you have about the statement and how each of line items has been determined. If there is something that you do not understand, ASK.
The following is an explanation of the various line items that you will see on your HUD
700. Sales/Broker's Commission: This is the total dollar amount of the real estate broker’s sales commission, which is usually paid by the seller. This commission is typically a percentage of the selling price of the home.
800. Items Payable in Connection with Loan: These are the fees that lenders charge to process, approve and make the mortgage loan.
801. Loan Origination: This fee is usually known as a loan origination fee but sometimes is called a “point” or “points.” It covers the lender's administrative costs in processing the loan. Often expressed as a percentage of the loan, the fee will vary among lenders. Generally, the buyer pays the fee, unless otherwise negotiated.
802. Loan Discount: Also often called "points" or “discount points,” a loan discount is a one‑time charge imposed by the lender or broker to lower the rate at which the lender or broker would otherwise offer the loan to you. Each "point" is equal to one percent of the mortgage amount. For example, if a lender charges two points on a $80,000 loan this amounts to a charge of $1,600.
803. Appraisal Fee: This charge pays for an appraisal report made by an appraiser.
804. Credit Report Fee: This fee covers the cost of a credit report, which shows your credit history. The lender uses the information in a credit report to help decide whether or not to approve your loan and how much money to lend you.
805. Lender's Inspection Fee: This charge covers inspections, often of newly constructed housing, made by employees of your lender or by an outside inspector.
806. Mortgage Insurance Application Fee: This fee covers the processing of an application for mortgage insurance.
807. Assumption Fee: This is a fee which is charged when a buyer “assumes” or takes over the duty to pay the seller’s existing mortgage loan.
808. Mortgage Broker Fee: Fees paid to mortgage brokers would be listed here.
900. Items Required by Lender to Be Paid in Advance: You may be required to prepay certain items at the time of settlement, such as accrued interest, mortgage insurance premiums and hazard insurance premiums.
901. Interest: Lenders usually require borrowers to pay the interest that accrues from the date of settlement to the first monthly payment.
902. Mortgage Insurance Premium: The lender may require you to pay your first year’s mortgage insurance premium or a lump sum premium that covers the life of the loan, in advance, at the settlement.
903. Hazard Insurance Premium: Hazard insurance protects you and the lender against loss due to fire, windstorm, and natural hazards. Lenders often require the borrower to bring to the settlement a paid-up first year’s policy or 
to pay for the first year's premium at settlement.
904. Flood Insurance: If the lender requires flood insurance, it is usually listed here.
1000 - 1008. Escrow Account Deposits: These lines identify the payment of taxes and/or insurance and other items that must be made at settlement to set up an escrow account. The lender is not allowed to collect more than a certain amount. The individual item deposits may overstate the amount that can be collected. The aggregate adjustment makes the correction in the amount on line 1008. It will be zero or a negative amount.
1100. Title Charges: Title charges may cover a variety of services performed by title companies and others.
1101. Settlement or Closing Fee: This fee is paid to the settlement agent or escrow holder. Responsibility for payment of this fee should be negotiated between the seller and the buyer.
1102-1104. Abstract of Title Search, Title Examination, Title Insurance Binder: The charges on these lines cover the costs of the title search and examination.
1105. Document Preparation: This is a separate fee that some lenders or title companies charge to cover their costs of preparation of final legal papers, such as a mortgage, deed of trust, note or deed.
1106. Notary Fee: This fee is charged for the cost of having a person who is licensed as a notary public swear to the fact that the persons named in the documents did, in fact, sign them.
1107. Attorney's Fees: You may be required to pay for legal services provided to the lender, such as an examination of the title binder. Occasionally, the seller will agree in the agreement of sale to pay part of this fee. The cost of your attorney and/or the seller’s attorney may also appear here.
1108. Title Insurance: The total cost of owner's and lender's title insurance is shown here.
1109. Lender's Title Insurance: The cost of the lender’s policy is shown here.
1110. Owner's (Buyer’s) Title Insurance: The cost of the owner's policy is shown here.
1200. Government Recording and Transfer Charges: These fees may be paid by you or by the seller, depending upon your agreement of sale with the seller. The buyer usually pays the fees for legally recording the new deed and mortgage (line 1201). Transfer taxes, which in some localities are collected whenever property changes hands or a mortgage loan is made, can be quite large and are set by state and/or local governments. City, county and/or state tax stamps may have to be purchased as well (lines 1202 and 1203).
1300. Additional Settlement Charges:
1301. Survey: The lender may require that a surveyor conduct a property survey. This is a protection to the buyer as well. Usually the buyer pays the surveyor's fee, but sometimes this may be paid by the seller.
1302. Pest and Other Inspections: This fee is to cover inspections for termites or other pest infestation of your home.
1303-1305. Lead-Based Paint Inspections: This fee is to cover inspections or evaluations for lead-based paint hazard risk assessments and may be on any blank line in the 1300 series.
1400. Total Settlement Charges: The sum of all fees in the borrower's column entitled "Paid from Borrower's Funds at Settlement" is placed here.
Some fees may be listed on the HUD-1 to the left of the borrower’s column and marked “P.O.C.” Fees such as those for credit reports and appraisals are usually paid by the borrower before closing/settlement. They are additional costs to you. Other fees such as those paid by the lender to a mortgage broker or other settlement service providers may be paid after closing/settlement. These fees are usually included in the interest rate or other settlement charge.
Section 100. summarizes the borrower’s costs, such as the contract cost of the house, any personal property being purchased, and the total settlement charges owed by the borrower from Section L.
Beginning at line 106, adjustments are made for items (such as taxes, assessments, fuel) that the seller has previously paid. If you will benefit from these items after settlement, you will usually repay the seller for that portion of the cost.
Section 200 lists the amount paid by the borrower or on behalf of the borrower. This will include the deposit of earnest money you put down with the agreement of sale, the loan(s) you are getting and any loan you may be assuming.
Beginning at Line 210, adjustments are made for items that the seller owes (such as taxes, assessments) but for which you as the borrower will pay after settlement. The seller will usually pay you or credit you this portion at settlement.
Section 300 reflects the difference between the gross amount due from the borrower and the total amount paid by/for the borrower. Generally, line 303 will show the amount of cash the borrower must bring to settlement.
An adjustment at settlement it is usually necessary between buyer and seller for property taxes and other expenses. The adjustments between buyer and seller are shown in Sections J and K of the HUD‑1 Settlement Statement.
Similar adjustments are made for homeowner association dues, special assessments, and fuel and other utilities, although the billing periods for these may not always be on an annual basis.
TIPS:
Do ask lenders what fees they charge, as well as the interest rate and points, when shopping for a loan.