Below is a list of the most commonly asked questions we receive in regards to the actual closing. Hopefully our answers to these questions will take some of the mystery and unknowns out of the settlement process.
- Who will be there?
- How long does it take?
- What is everyone’s role at closing?
- What do I need to bring with me as a buyer or seller?
Purchase – The Buyers, The Sellers, Buyer’s Realtor, Seller’s Realtor, The Settlement Agent, The Buyers’ Representative from the mortgage company and should either the buyer or seller have any attorney, they too may be there.
Refinance - The Borrower/Home Owners, The Settlement Agent and possibly a representative from the mortgage company
Purchase – On a typical residential settlement the closing should take approximately one hour if the buyer is signing mortgage papers. If it is a cash transaction the settlement may be less than 30 minutes. When scheduling your moving company and possibly back to back settlements when you buy and sell in the same day, allow yourself an hour and a half for each settlement this will take away a lot of stress should there be a delay at closing.
What is everyone’s role at closing?
The Buyers/Borrowers – During the settlement the buyers will be signing their mortgage papers, in addition they will be signing a few papers for the title company.
The Sellers – The sellers typically have much less to do at a settlement than the
Buyers, they will often have only a few papers to sign.The Buyers’ Realtor – To make sure all terms in the agreement of sale have been satisfied, including but not limited to, making sure all test results, Use & Occupancy Certificates and other certification have been provided to the buyer and reviewed by the buyer. It is also their job to provide the settlement agent with any items that need to be but on put on the settlement sheet. To review the settlement sheet and check for accuracy on behalf of their client(s) prior to reviewing it with the clients.
The Sellers’ Realtor – To make sure all terms in the agreement of sale have been satisfied. It is also their job to provide the settlement agent with any bills, adjustments, etc that need to be put on the settlement sheet. It is also their job to provide the buyers and/or their agent with copies of any test results, certifications, etc. The sellers’ realtor also typically brings to settlement the buyers’ escrow money, tax, sewer, water certifications etc. In addition he or she should review the settlement sheet and check for accuracy on behalf of their client(s) prior to reviewing it with the clients.
The Mortgage Company Representative - At the time of settlement the mortgage company representative should review with the buyers all mortgage papers. The buyer should insist at the time of their mortgage application and as a condition for that lender getting their business, that the lender will have a representative at settlement to review the mortgage papers with the buyer and to resolve any questions that may arise in regards to the terms of the financing presented at closing.
The Settlement Agent – The settlement agent’s role at settlement is similar to that of an orchestra’s conductor. He or she needs to pull all the pieces together and make it look seamless in order to pull off the grand finale. The settlement agent must review the lender closing instructions, obtain any outstanding items needed for the lender, such as an insurance policy with a paid receipt or bill, a settlement sheet from the sale of buyers’ previous home. The settlement agent must also obtain from the realtors any certifications or copies of bills that need to be on the settlement sheet. The settlement agent must review documents with the buyers and sellers and check the documents for accuracy. The settlement agent must review the title commitment to make sure all requirements have been met in order to issue a final title policy to the buyer and/or lender. And most importantly the settlement agent is responsible for the preparation the final settlement sheet, the accuracy of the numbers and the disbursement of all funds.
What do I need to bring with me as a buyer or seller?
Buyer – Below is a list of the most common things a buyer is asked to bring to settlement. Please note your lender, realtor, or title company may ask you to bring additional items.
Photo Identification One form of government issued Photo Identification such as a driver’s license or passport. (In the event of no photo id, most title companies will require 2 other forms of id such as
a social security card and voters registration. Please check with your title company).Homeowners Insurance Policy w/ paid receipt or a bill to pay at closing
Certified Funds, Bank/Cashiers Check or Electronic Wire– Buyers must have their checks made payable to themselves or to the title company and they must be in the form of a certified check or a bank/cashiers check. Buyer may also wire their funds directly to the title company, call your title company for their specific wiring instructions. Note: Money Market and Brokerage Checks are not considered Certified or Bank checks. If a buyer’s check is written for more than the actual amount needed at closing, the settlement agent will write a check back to the buyer for the difference.
Seller – Below is a list of the most common things a seller is asked to bring to settlement. Please note realtor, or title company may ask you to bring additional items
Keys – Remember to ask neighbors friends and family to return any keys to your home that you may have given them
Garage door openers
Property settlement agreement & divorce decree - If at any time during the ownership of your property you have entered into a property settlement agreement and/or a divorce decree, complete copies of each must be furnished to the title company. It is usually best to provide this to the title company in advance of the closing in order not to delay closing.
Alarm Company Name, Phone Number and Codes - (if applicable)