Closing (sometimes referred to as settlement) is the date and time you and Draper and Kramer Mortgage Corp. turnover the funds necessary to acquire the Deed on the property you are purchasing. All of the activities necessary to make this a reality are accomplished by title companies or professional legal people that know exactly what actions must be completed before the Deed on the property is exchanged for a specific monetary amount.

Who attends the closing? This will vary, so check with Draper and Kramer Mortgage Corp. or your real estate agent or builder representative for details. Normally, those in attendance will be the buyer(s), seller(s), settlement/title company agent (which typically acts on behalf of Draper and Kramer Mortgage Corp.), the real estate agent(s) or builder representative(s), and possibly an attorney if selected.

The role of the settlement agent/title company must accomplish the job of completing all the actions necessary to make the settlement/closing legal so that the Deed can be properly recorded. Although the specific actions that must be taken by the settlement/title company agent vary with the county requirements and the specific circumstances of the sale contract, here are some of the key items that the title company/settlement agent must insure are completed and paid for at settlement, normally referred to as closing costs:

• Title Work. A title company/settlement agent will perform a title search and prepare the necessary title documents and title insurance policies.
• Lender's Documents. The title company must interact with Draper and Kramer Mortgage Corp. to review all documents that we must have signed at closing. We will also provide to the title company a detailed list of the all monies that must be paid by you at closing for items that you have not paid for directly to us during the processing of your loan.
• Escrow Account. As a convenience to you, we require in general that the real estate property taxes, hazard insurance, and mortgage insurance (if any) be collected on a monthly basis as an additional cost to the mortgage note payment. These monies are held by us and paid out when they become due. Each year, you will receive an analysis show payments made out of the escrow account versus the monthly escrow amount you pay into the escrow account and indicate any adjustments if needed. You should review this area prior to closing and have a complete understanding of what funds are required in order to set up an escrow account.
• Hazard Insurance. Commonly referred to as Home Owner's Insurance, Draper and Kramer Mortgage Corp. requires that you obtain a full year hazard insurance policy on the structure contained on the property you are purchasing. You will be request to provide DKMC with an insurance policy at closing as documented proof that a hazard insurance policy is in effect the day you become the owner of the property. DKMC must be listed as the Mortgagee on the policy. As your Mortgage Planner for complete instructions on exactly how our name must appear and the proper address so you can notify your insurance company accordingly.
• Flood Insurance. If your property is in a defined flood zone, the same rules that apply for hazard insurance apply here as well.
• Government Recording and Transfer Fees. Depending on the locality of the property be purchased, city, county and/or state may charge fees for recording the transfer of the Deed and the mortgage. The title company will determine what these actual fees are and you will pay them at closing.
• Home Owners Association Fee. If you live in a community that requires you to be a member of a Home Owners Association, then there will probably be some adjustment between the Seller and Borrower at closing. For example, if the seller ha paid his annual association fees and closing is six months into the year, then the seller will be credited with an amount equal to six months of fees and you as borrower will be charged that amount. The title company must compute and record these actions.
• Other Items. Other items, such as the property survey, are requirements that the title company will insure are completed prior to closing. Any of these costs that have not been paid previously must be paid as specified in the sales contract.

Your real estate agent, builder representative, and DKMC Mortgage Planner will work with you throughout the entire process to ensure that you have a complete understanding of all the intricacies of the closing process.