the closing process
What should you expect before closing and what is involved in settling a real estate transaction? Read the short synopsis below to familiarize yourself with the closing process.
Welcome to Home Ownership!
Whether you have just signed a contract to purchase a home or have decided to refinance your current mortgage, our office provides the time and place for your settlement. Before reaching the closing table, representatives from your lender are in contact with our office as your loan progresses through the underwriting stages to ensure a smooth closing process. But how does the process start?
The Preparation
Our office begins preparing for your closing as soon as our closing deapartment receives a request for title examining the property in question. This exam provides a history of transactions regarding the subject property and insures against the existance of liens before the parties complete the transaction. As the examination is being conducted, our closing department collects insurance, tax, and payoff documentation in accordance with your lenders instructions.
Once this information has been gathered, our office receives the closing package from your lender’s underwriting department. This package consists of all mortgage documents originated for your loan to be executed at your closing. With these documents, our closing secretary creates your settlement statement and gains approval from your lender to begin your closing.
At the Closing Table
To begin, the closing attorney explains the settlement statement, a document outlining the expenses of closing a loan and ensures all parties to the closing understand how closing costs are assigned. Once the settlement statement has been signed, the loan documents are presented to the borrower under the direction of the closing attorney. These documents explain the material aspects of the mortgage being undertaken and outline the terms of payment expected by the lender. Documents are then presented to the seller to officially convey and transfer the subject property into the borrower’s name.
Should the loan amount not sufficiently cover all expenses incurred by the closing process, the borrower should bring the appropriate funds to cover the additional settlement charges. All parties involved in the transaction should bring a government-issued photo ID, such as a driver’s license or passport, to comply with the Patriot Act. If not received prior to closing, paid receipts for termite inspections, surveys, and homeowners’ insurance policies should be brought to closing for proper reimbursement. If a purchase is being made, the current copy of the sales contract should be with the closing attorney to ensure all amendments have been taken into consideration.
