
So many things become finalized at a mortgage closing. You are finally a homeowner, and you are also finally overwhelmed by your signature. As a child, you would see famous people sign hundreds, upon hundreds, of autographs for people. You had no idea that this would mirror the process you’d endure to close on your property. Who could’ve told you?! Due to hand cramp trauma, it’s probably something people don’t ever want to think about. So, that’s where we’ll begin: You will sign all of the documents, and pay all of the closing costs. Your lender pre-approved you for your property loan, your seller accepted that offer. Knowing what to expect, like that you were pre-approved for the property loan and that it was accepted by the seller can take the pressure off a bit and make this a less stressful process.
Knowing the escrow process could help you understand how the closing will play out a bit better. This is a process that will vary from state to state, and it protects both the buyer and the seller. The seller will need to disclose any potentially negative information that they know about the property, the buyer will also request property inspections, title reports, and appraisals. The lender will also order an appraisal, which may be tied to the appraisal that the buyer will request. The lender will also request several documents, income information, assets, and other paperwork or applications that display your creditworthiness. A mortgage closing is the final performance of all agreements that need to be made between the buyer, seller, and the lender for the purchase and the finance of the property to be finalized. The signing of the closing documents transfers legal ownership from the seller to the new owner of the property. The faces around the table at the closing could be a mystery, but we’ve talked about them before and they’re all neatly tied to the property transaction.
On the day of the closing you will need to have all buyers whose names appear on the property’s title and mortgage present their government-issued photo identification. There’s a lot of paperwork involved in the closing process, it’s estimated that you may sign or initial more than 100 items. The timing estimated does not reach 24 hours, though you may feel that is the case looking at the daunting number of arrow flags you see on the papers you’re presented with. Professionals estimate that the closing will last about an hour. The transfer of funds and the closing cost reconciliation process will take place after all items are signed. This means that the lender’s fees, appraisals, credit reporting and inspections, and mortgage insurance are paid at this point. You will also see that pre-paid items unrelated to loan fees, such as property taxes, homeowner’s insurance, and whatever per diem interest are owed will also be paid. The closing agent will review the closing disclosure, ensuring that all financial numbers that were originally disclosed are distributed as intended at closing. The closing funds cannot be brought in cash or personal check, these funds must be wired or in a cashier’s check. The payment information is something that your lender, or closing agent, will confirm with you prior to the closing date.
After the seller publicly transfers the property to the buyer, the title agent will record the deed. Then you get your property keys and are officially a homeowner! If you are a first-time home buyer or a seasoned investor, Gables Title Group knows that selecting the right title agency is essential, and would love to make the difference between closing or losing your property deal.
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