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Settlement refers to wrapping up the home buying process and is generally interchangeable with the term closing. Transfer of the property title and receipt of payment for the property are both handled on closing day.

Escrow is a legal contract that involves custody of an asset until all conditions are met. Once all conditions are met by both the buyer and the seller, escrow is closed. Closing of escrow can differ from your closing date. There are situations that could delay or prevent closing escrow.

Settlement costs (also known as closing costs) are the fees that the buyer and/or seller have to pay to complete the sale of the property. Depending on the lender, these may include origination fees, credit report fees, and appraisal fees, as well as property taxes and recording fees.

Action steps Submit documents and answer requests from the lender. Schedule a home inspection. Shop for homeowner's insurance. Look out for revised Loan Estimates. Shop for title insurance and other closing services. Review documents before closing. Close the deal. Save and file your documents.

The terms "title", "escrow", and "settlement" are often used interchangeably to refer to a company that will "close" the sale of your home - or finalizing the sale.

Settlement and signing With a clear title and title insurance policy?and after all other items required by the lender are complete?the title company can schedule a closing date, which is also known as the settlement date. Your title company and lender will work together to prepare the closing paperwork.

In some cases, the parties may be able to work out negotiations that involve compensation. They may decide to negotiate an agreement in terms of financial reimbursements on the mortgage. This is known as a mortgage settlement. It is similar to settlements in other areas of law, such as personal injury law.