What is a Closing? 

 
You've found the perfect home, the terms have been agreed upon, the contract has been signed, you've chosen a lender and applied for your loan.

Now it's time for the title request to go to the title and closing company. The buyer will normally choose the closing company/attorney to handle the closing.  The closing company/attorney will work closely with all parties to insure that your closing is an efficient and pleasant experience.
 
 
WHAT HAPPENS NEXT?
 
 

1. When the closing company/attorney receives a title request, a file is immediately opened, acknowledgement letters are mailed or e-mailed to the buyer, buyer's agent, buyer's lender, the seller and the seller's agent. These letters are to let all parties know the order has been received, who the contact at the closing company/attorney will be and the documentation that the buyer and the seller will be required to obtain on or before the closing.

2. The Title Search Department will conduct a search of the Public Records to determine who owns the property, who has liens on it and if there are restrictions on how the property can be used by the owner. From this report, they will determine what is required to clear the title so that the lender will obtain an insurable interest in the property.


3. If required by the buyer's lender, a Mortgage Survey Inspection will be ordered from a licensed surveyor/engineer. When the drawings are received, they will be reviewed to determine that all improvements, including buildings and fences, are within the boundary lines and there are no encroachments for set-back lines or easements.

4. A payoff of the seller's existing mortgage will be ordered from their current lender to be collected at closing along with payment of property taxes and any other liens that may appear on the title search in order to clear the title.

5. A Commitment for Title Insurance will be prepared from information shown on the title search and fax or e-mail it to the lender for their review. The commitment will provide them with pertinent information including the current title holder, a correct legal description of the property, any and all easements and restrictions, as well as a summary of what is required to transfer title. These requirements typically include the execution of a Warranty Deed, the payoff and release of any liens or judgments, and the payment of property taxes.

6. Once the buyer's loan is approved, the lender will notify the settlement coordinator and they will coordinate with the buyer and buyer's agent a convenient closing date and time. The lender will overnight or e-mail their loan closing paperwork to the closing company/attorney and they will prepare the remaining documents necessary to complete the package to be executed by all parties.

7. The day of the closing has arrived and all parties meet at a convenient location to sign the paperwork and transfer the keys. The closing company/attorney will provide explanations of the documents which will be required to be signed and will insure that all the terms of the contract have been met. After all signatures have been obtained and all requirements are met, the funds due from the buyer and/or the seller will be collected. Net proceeds to the sellers and commissions will be disbursed and keys are turned over.

8. After the closing, the closing company/attorney will disburse the remaining funds to the designated parties for the charges collected on the Settlement Statement, send the original loan closing package back to the lender, and record the appropriate documents such as the Warranty Deed and Mortgage Deed. After the documents have been recorded, the closing company/attorney will issue Title Insurance Policies. The original Warranty Deed and Owners Title Policy will be mailed to the buyer. The original Mortgage Deed and the Mortgage Title Policy will be sent to the lender. This completes "The Closing Process."
    
    
WHAT'S EXPECTED OF THE BUYER ON OR BEFORE CLOSING?
    
Homeowner's Insurance
  The buyer will need to obtain a homeowner's insurance policy for the property they are purchasing. The buyer's lender requires this insurance. The agent of your choice needs to call the closing company/attorney with information regarding your new policy as quickly as possible. This information is essential for the title company to prepare the final closing figures.
   
Cashier's Check
  A cashier's check is required for any final closing cost amounts over $100 and should be payable to yourself.
   
Identification
  At closing, you will be asked for a copy of your Driver's License, or some other form of valid government issued identification that includes your picture and signature.
    
Contractual Obligations
  The sales contract should contain all agreements between the buyer and seller and must be signed. Any changes must be initialed by both parties. The closing company/attorney will prepare and conduct the closing only according to the terms agreed upon in the contract. If you have any questions about any item in your contract, please discuss this with your real estate agent. If possible, it is always best to get any issues resolved before getting to the closing table.
    
Miscellaneous
  If you or anyone that is a part of your transaction will not be available to attend the closing, you must notify your lender (if you are the buyer), the closing company/attorney, and your real estate agent at least 7 business days prior to closing. The absent person will be required to execute a "Specific Power of Attorney" to appoint someone to sign on his or her behalf to permit the closing to continue without that person being present. This procedure will also require the approval of your lender, if you are the buyer.

If you or anyone that is part of your transaction is in the process of bankruptcy, divorce or any other court proceedings, you must notify your lender, your real estate agent, and the closing company/attorney as soon as possible. These issues could take time to resolve and need to be handled prior to closing.
    
    
WHAT'S EXPECTED OF THE SELLER ON OR BEFORE CLOSING?
   
Mortgage Payoff Information
  The seller will be required to pay off any and all existing liens on the subject property. The seller will need to notify Our Closing Company of the names and phone numbers of all current mortgage holders along with social security number of all borrowers and the loan numbers. It is necessary to supply this information as soon as possible, as it can take up to 5 - 15 business days to obtain the payoff amounts. At times, the buyer may be required to provide written authorization for the payoff.
    
Condominium Associations (if applicable)
  If you are selling a condominium, the closing company/attorney will need you to provide the name of the condominium association, contact and phone number.
    
Transferring Deed
  As the seller, you will be required to provide the deed conveying your interest in the property. The closing company/attorney will prepare the deed, on your behalf, upon your request.
    
Cashier's Check
  Unfortunately, from time to time, a seller may be required to bring funds to the closing table. In this case, a cashier's check payable to yourself will be required for the full amount of the final figure.
   
Identification
  At closing, the seller will be asked for a copy of their Driver's License, or some other form of identification that includes your picture and signature.
  
Contractual Obligations
  The sales contract should contain all agreements between the buyer and seller. It must be signed and any changes initialed by both parties. The closing company/attorney will prepare and conduct the closing only according to the terms agreed upon in the contract. If you have any questions about any item in your contract, please discuss this with your real estate agent. If possible, it is always best to get any issues resolved before getting to the closing table.
   
Miscellaneous
  If the seller or anyone that is part of your transaction will not be available to attend the closing, they must notify the closing company/attorney and their real estate agent at least 7 days prior to closing. The absent person will be required to execute a "Specific Power of Attorney" to appoint someone to sign on his or her behalf to permit the closing to continue without that person being present.

If the seller or anyone that is a part of your transaction is in the process of bankruptcy, divorce or any other court proceedings, you must notify the closing company/attorney and their real estate agent as soon as possible.  If any of the property owners are deceased, a Will and/or a Death Certificate will be required. If there is not a Will, an Affidavit of Heirship will be required to attest that the named sellers are the only heirs of the deceased. If any of the property owners are minors, court approval will need to be obtained. These issues could take time to resolve and need to be handled prior to closing.

If the seller is the sole owner of the subject property but are married, your spouse will be required to sign the Warranty Deed only to convey any rights they may have in the property. That spouse will also need to provide a copy of their Driver's License, or some other form of valid government issued identification that includes their picture and signature.