What to Expect on Closing Day?
Your closing day is something you have been waiting for. You have marked it on your calendar and started a countdown from the moment you had a date. In the bigger picture, you know that by the end of the meeting, you are going to be walking away with keys in hand if all goes well.
It is what happens in the in-between that most people don’t understand – especially first-time buyers.
To help ease the jitters and allow you to walk confidently into the closing, let’s talk about what you can expect on closing day.
The Purpose of the Closing
The purpose of your closing is to transfer the property from the current owner to you, the new owner. This means signing a lot of documents and transferring funds. In short, you are signing your name to show you are purchasing the property for a said amount of money.
When a lender is involved, you will also be tending to loan documents, too. Everything is handled all in one sitting.
It should be noted that depending on the region you are in, a closing date may be referred to as a settlement date. These terms are used interchangeably and refer to the same thing in the title industry.
The Closing: Who, When, Where?
The closing will take place after the title has been cleared, inspections are done, the loan documents are prepped, etc. When everyone involved in the transaction has done their part, the closing can happen.
Those you may expect to see at your closing may include any of the following: your realtor, the title company, the escrow company (often the same as the title company), the seller’s realtor, a real estate attorney, and the lender.
Where the closing takes place can vary. Sometimes everyone comes together at a set time at the title company’s office. Other times, it could involve each party meeting at the location at different times/days. Or, you may even find that your title company offers remote closings where it may be done online or in the comfort of your own space with a signing agent.
There are many options as to where the closing may take place – just ask your title agent.
The Closing Documents
The closing documents will be slightly different depending on the specifics of your transaction. Though, be prepared to sign quite a few. Many documents are drawn up for the transfer of the property, such as the new deed to the property, a bill of sale, and a declaration of transfer tax.
If you are taking out a mortgage to make the purchase, count on a lot of loan documents, too, including the mortgage agreement and the note.
Each closing transaction wouldn’t be complete without title insurance documents, legal disclosures, tax records, riders, and so forth. The good news is that you can feel confident the title agent facilitating the closing will give you a brief overview of what you are signing before you sign it.
Transferring Funds and Ownership
Finally, once all the documents are signed, the funds to purchase the property will be transferred to the seller. This is done by an escrow agent who ensures that everything has taken place before any money changes hands. They will then see that the money is collected and delivered to the proper parties.
To confirm that this transaction has taken place and to make the new ownership official, the signed deed to the property is recorded in the local recorder’s office. This will show you as the rightful owner of the property.
Closings with FIT Agency
At FIT Agency, we love closing day. Everything that we have done together from the moment you signed your initial purchase agreement has led us to this day. That’s why we make sure we have everything in place so that you have a smooth, hassle-free closing – and are sure to walk out of the closing with keys in hand.
Learn more or get started today. Contact us at (732) 630-0900.
Our goal is to treat you with personalized service by getting to know your goals and helping you to achieve success. We’ll partner with you to provide fast and accurate title and settlement services. By continuously analyzing our processes and integrating the newest technologies, we streamline our processes so you get faster turnaround times to meet your important deadlines. Start building a professional relationship with us today. Send an inquiry now.
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