Before closing, you’ll sign an authorization allowing the title company or closing attorney to obtain your final mortgage payoff amount.
This ensures the closing documents are accurate and your loan balance is paid directly from your proceeds at closing.
The closing company will issue a check from your funds to pay off your mortgage in full.
If you have a home equity line of credit (HELOC) or other liens tied to the property, you’ll need to authorize the title or closing company to obtain the payoff information.
Any balances due will be paid from your proceeds at closing, and those accounts will be closed as part of the transaction.
Some mortgages include a prepayment penalty if the loan is paid off early.
In addition, you may owe interest for the portion of the month leading up to your closing date.
Your final mortgage payoff will include these amounts, ensuring that everything is fully satisfied.
A title search is completed prior to closing to uncover any unpaid property taxes or liens against the home.
These must be cleared before transfer of ownership.
At closing, the title company will pay these items directly from your proceeds on your behalf, ensuring the buyer receives a clear title.
Special assessments are fees charged by local governments for improvements such as water, sewer, roads, or neighborhood enhancements.
In most cases, these assessments must be paid off before closing, though sometimes they can be assumed by the buyer depending on the terms of the contract.
If they are due, the closing company will pay them out of your proceeds at settlement.
While some of these costs are standard, others vary depending on your mortgage terms, location, and local regulations.
Your Treeline Realty agent will help you anticipate these expenses so there are no surprises at the closing table—ensuring a smooth, stress-free transition to your next home.
