10 Oct What to Expect During the Closing Process
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In any of the life’s big processes, there is that special moment when all previous hard work and spent time come together on a single occasion. In the education process, this occasion is the graduation day, while for a romantic relationship, the same moment comes in the form of a wedding. In the real estate process, this event comes in the form of the closing day, also known as a settlement day. Here are some of the most important facts about this moment and also an explanation of what to expect during the closing process.
A Big Day
Closing day procedures will last at least two hours which will be spent in the office of an agent that does the closing. Because of this, a meal beforehand would be a good idea, as well as taking coffee or water if it is offered. Both will help the buyers stay alert and aware of the important procedures that are taking place.
This differs from place to place, but most often, both the seller and the buyer will be present. The closing agent will most likely be an attorney, a representative of an escrow company or a title officer. In any case, the agent will be a neutral party to this deal, while an additional lawyer or a real estate agent also might be present.
Anyone heading to closing day procedures should bring a photo ID like a passport or a driver license. Then, a certified or a cashier’s check will be needed. Bringing cash or a personal check is not a good option for almost any closing process. Any wire transfers are a possibility, but they have to be agreed upon with the bank a few days in advance so that there are no problems upon payment. Finally, the buying party will need a proof of insurance, a sales contract, and the final purchase.
Questions and Signing
The buying party will be asked about the nature of the future ownership, which can come in the form of a sole owner, a joint tenancy or even a tenants-in-common setup. The signing that will commence after that will cover a promissory note, statement of truth in lending, deed of trust (mortgage) and lastly a monthly payment letter.
Final Closing-Related Documents
The final batch of documents will cover a closing disclosure, title or the warranty of deed, proration papers, statements of information, declaration of reports and at the end, an abstract of the purchased title. With them signed and delivered to the neutral agent, the process of purchase of real estate will be fully completed. Finally, at this stage, the celebrations can begin because the closing day process is finalized.