This is it! The day you have been working forward to since you started thinking of buying or selling a home.
There are a few things you will need to prepare for to have a smooth closing day.
- Your identification.
You will need to have a valid, current ID. Check it and make sure it is current! They will not except expired ID’s. If one is expired, please bring a different one or renew it. A passport, or driver’s license are the most commonly used ID’s.
If you are a foreigner, you will need to provide two forms, but please check with your title closer to verify what will be accepted.
- The Funds.
Both sides of the transaction will have to decide how to transfer funds.
If you are the buyer and have a loan, your lender will need to get the funds to the closing table on time. You will likely have to pay the portion of the payment that is not covered by the earnest money or loan. This amount is found on the Buyer’s Settlement statement. Most money usually goes in via electronic transfer, but it can be with a cashier check also. Check with your title closer to see if the amount you must bring is too large to be paid with a cashier check, some title companies do have limits on how much can be via cashier check. A personal check will not be accepted.
If you are the seller, in most cases, you will be receiving money. You get to decide if you want a cashier’s check or want it transferred electronically. The is often a fee for the electronic transfer. Let you title company know your account info so any transfer can take place seamlessly.
Warning! There are a lot of scams related to electronic transfers to title companies today. Always double check with a live person, that you called, that the routing information is correct. If you ever receive an email from the title company stating the routing number has changed, do not believe it and call your title company.
- Documents. Documents. Documents.
If you are the Buyer, you need to do some hand and finger stretching before arriving. You will be signing a very large loan packet and the closer will describe what each one is. You will also sign the deed of trust, the bill of sale and other documents related to the title transfer. You will also be signing off on the Buyer’s Settlement Statement which tells you exactly where your money is going and the total cost to you. Please review this carefully and don’t be afraid to slow the process down so you understand the numbers. This is also a document you will want to save for tax time as you maybe able to write off some of the costs.
If you are Seller, you get it easier, as you don’t have to sign the large loan packet. Your signing is limited to the title closing documents and the Seller Settlement Statement. Look these over carefully and don’t be afraid to ask questions. You will also want to save this document for tax time.
Now the ceremonial passing of the keys, handshakes and hugs and you are done.
Please note that not all closings are the same so if you are doing something special like a 1031 exchange, you are upside down in your home value, there maybe some other pieces added to the closing. I will prepare you for the differences and you are always welcome to contact me.
I am always here for you, well beyond the close date, if you need further assistance with referrals to good service people, want to know the value of your home, have questions on the market, want to invest in real estate, or are ready for a new one. Just contact me and I can help.
Congratulations you are ready for your closing!