The Closing Process

PREPARATION FOR CLOSING

Buyer’s Checklist

* Certified Funds (for downpayment and closing cost)

* Photo Identification – Driver’s License or Passport

* Original Homeowners Insurance Policy. Bill or statement of coverage. (If not previously sent to the closing attorney)

* Any closing conditions required by the Lender

* Original Termite Letter (if applicable)

Seller’s Checklist

* Photo Identification – Driver’s License or Passport

* House Keys and Garage Door Openers

* Original Termite Letter (if applicable)

THE CLOSING CEREMONY

 Who attends?

* Buyer(s)

* Seller(s)

* Real Estate Agents

* Loan Officer (may or may not attend)

* Closing Attorney

What Happens at closing?

* Typically, the Lender’s conditions are cleared first

* Next the closing statement is explained and discussed

* The Loan/Financing documents are signed by the Buyer

* The Warranty Deed and other conveyance documents are signed by the Seller

* Funds are then received and disbursed

* Any unsigned Realtor documents may signed

Who does the Attorney Represent?

* In most instances the Attorney conducting the closing represents the Buyer’s Lender.

* If the transaction is a cash closing in which there is no Lender, then the Attorney generally represents the Buyer.

What does the HUD-1 address?

* The HUD-1 Statement shows all of the fees associated with the transaction. This includes, but is not limited to the following:

* The lender fees

* Prepaid Interest

* Escrows for property tax and homeowners insurance

* Title insurance

* Recording Fees

* Intangible tax and Transfer tax

* Real Estate Commission and Earnest Money

* Proration of Property Tax and HOA dues.

* Mortgage Payoffs for existing loans owed by Seller

What documents must the Buyer sign?

* Note

* Security Deed along with any Riders.

* Federal Truth and Lending Statement

* Initial Escrow Account Disclosure

* Various Required Affidavits

* Loan Servicing Disclosure

* PMI Disclosure (if applicable)

* IRS Documents: W-9, 4506, 8821

* Document Correction Agreement

* Loan Application

* Flood Zone Notification

What documents must the Seller sign?

* The Deed transferring ownership of the property

* Various Affidavit’s including the Seller’s Affidavit

* Payoff Letter

POST CLOSING – WHAT HAPPENS AFTER CLOSING?

* File Disbursement

* Proper post closing is of critical importance to the Lender, Buyer, and Seller.

* During post closing the file is put in the order required by the Lender and returns all original documents to the Lender, with the exception of documents that must be recorded.

* The Lender MUST receive the closing package within 24 hours of closing.

* The Attorney sends the original deeds to the clerk of the Superior Court for the county in which the property is located. This includes the Warranty Deed and the Security Deed along with any Riders and Power of Attorney documents.

* Checks are disbursed to vendors shown on the HUD-1 and the Seller’s Mortgage Payoffs are mailed overnight to the Lender.

WITHIN WEEKS OF CLOSING

* Original Recorded Documents are returned to the Closing Attorney from the Courthouse. The Original Security Deed is sent the Buyer’s Lender and the Original Warranty Deed is sent to the Buyer.

* The Seller’s Lender will send in a Quit Claim Deed to the Courthouse to release the Lender’s lien on the property.

* The attorney verifies that all Post-Closing matter are completed.

* The Seller will receive a refund from their Lender of any Escrow Deposits and Excess Payoff Amounts.