The Closing Day Process. Insights and Best Practices

Steps Leading Up to the Closing Day Process

In the course of the home buying process, there are a lot of steps that you have to move through - getting your offer accepted, getting the home inspected, and getting the appraisal - so what happens on the day of closing?

Let's take a look at what to expect on closing day.

In addition to preparing for the closing, your attorney will handle all the details on the day of the closing, as well as any follow-up issues that may arise. When a property closes, ownership and funds are transferred from seller to buyer.

Timeline

An offer letter typically specifies the closing date, which would be determined by when the mortgage company would be able to process the loan. After an offer is accepted, the closing usually takes place within 30-60 days. Ensure that the date you choose works for your schedule. It is typical for the closing arrangements to be finalized a few days before the date scheduled.

Where does Closing take place, and what materials do I need to bring?

The purchase and sale agreement specifies where the closing will be located, but this location may have to be changed prior to the closing, depending on the circumstances. Most of the time, a location is coordinated by the buyer and their attorney. A real estate closing can be done either at the Registry of Deeds in the county where you purchased the property, at the law firm of your choice, or at the real estate office. It is required that you have a valid form of identification as well as a certified bank check (or wire transfer) in order to cover your closing costs and down payment. As part of the Closing Disclosure, your lender will provide you with an estimate of the total amount that will be due. It is important to keep in mind that your lawyer will confirm this amount as soon as they have verified and approved the final numbers and potential closing credits with the selling party.

Documents

The following documents must be signed:

  • As part of your mortgage agreement, you will sign a promissory note with a lender (a promise that you will repay the lender).
  • A mortgage document stating that your home is pledged as collateral as a guarantee of repayment of the loan.
  • An itemized closing disclosure. An appraisal, credit check, title search, and other charges are typically associated with processing the mortgage.

Other documents you must sign include tax records, the settlement statement, and a variety of legal disclosure documents. There is no need to worry, you will be provided with a detailed explanation of what each of these documents mean by the attorney.

Tips for avoiding common mistakes

Between getting your offer accepted and closing, here are some mistakes you should avoid:

  • If you are buying or selling a home, avoid closing on the last day of the month.
  • Final walk-throughs are important! Don't skip them! Ensure there are no new damages or damages that have arisen. Upon removing the seller's furniture, any new damages will not be covered by the seller once you have decided not to do the walkthrough.
  • Avoid large purchases - Using the information you have provided about your accounts, your bank has already approved you for a certain amount of money. There are times when there is a credit check performed just before closing, which means that if you make a substantial purchase it can have a negative impact on your financial information and result in a delay in your closing.
  • You should make sure to coordinate the delivery of a certified check or wire transfer instructions from your bank before closing. This is especially true if you have an online bank or a bank out of state.
  • It is very important that you carefully review the closing documents so that you are able to be sure that names and addresses have been entered correctly and will be recorded correctly.
  • In the event you or another co-borrower is going to be out of town on the day of the closing, make sure that your team is informed of this fact, as the bank will need to approve a Power of Attorney in your absence. Make sure you let your team know well in advance about any power of attorney you wish to utilize as not all loans allow them.
  • If the documents have not been recorded, you are not the owner. As a result, if you need to move in immediately, you should contact your team as soon as possible in order to schedule the closing at the Registry of Deeds so the keys can be released immediately after the paperwork is recorded.
  • Watch out for the dangers of cyber security! These large financial transactions are susceptible to cyber-attacks. As part of our efforts to prevent them, we release tips. Generally speaking, you should be extremely aware of the emails you accept files from. Also, any change regarding large financial transfers or wires should always be confirmed with your attorney or Realtor verbally.

You can experience overwhelming feelings during the buying process, which is why your Realtor and attorney are essential. It's their job to make sure you're well prepared, on time, and equipped with everything you need, so the closing day won't be a hassle.

Your new home is now yours!

Congratulations!