The Closing Process: What Home Buyers and Sellers Can Expect
Call it settlement, escrow, or closing – the final stage of a real estate transaction is an exciting time! With the opening of an escrow account, signing of legal documents, and transfer of title; the ownership of property finally changes hands from seller to buyer.
Who Attends Closing?
The parties required to be present during the final closing differ according to legal requirements. Usually present are the buyer and seller, with their attorneys (completely optional, but highly recommended), witnesses, notaries, the real estate agent, and mortgage provider.
Often, the closing process is entirely automated, and concerned parties do not need to meet at a particular place and time. Papers are simply mailed to the signatories by courier.
What Should You Bring For The Closing?
For the closing process to go smoothly, the buyer must bring their government issued photo ID, cashier’s checks for the closing costs, and all the paperwork required to complete the transaction. Sellers will need their government issued photo ID, copies of all the keys to the house, as well as codes for keyless entries and alarm systems (if applicable). Don’t forget to carry copies of documents like flood certification, proof of homeowner’s insurance and inspection reports.
The Closing Process
Whether you’re in Durant, OK or somewhere else, the closing process varies greatly depending on your agreement, and the real estate laws governing that state. Buyers and sellers may meet for a table-top closing at a mutually agreed upon location (usually the mortgage lender’s office), where all documents may be signed in person. Alternatively, the buyer may pre-sign documents or grant power of attorney to their lawyer.
Before the actual closing, the buyer is entitled to a walk-through inspection of the property to ensure that everything has been left according to the terms of the contract. If discrepancies are found, the closing is the time to ask for modifications in the transaction.
As a buyer, you will have a variety of costs on closing day. Expect to pay the bank for your escrow account, plus down payment on your mortgage. Official documents will come with additional costs. Other expenses include attorney’s fee, title insurance, transfer tax, and homeowner’s insurance. Look to your sales contract to understand who pays for what.