After dedicating weeks to visiting houses, securing mortgage approval, negotiating terms and price and successfully getting your offer accepted, you're now on the verge of closing day. But... What exactly occurs during a real estate closing?
Understanding Real Estate Closings A real estate closing (or signing) represents the final settlement between buyers, sellers, and any involved third parties for the property transfer. Typically, the process is overseen by an escrow agent—an individual, sometimes an attorney, specialized in managing real estate closings and preparing associated documents.
In certain states, buyers and sellers may close separately on different dates, while in others, both parties attend the closing simultaneously. Although logistical aspects may vary, the fundamental steps remain the same.
Sequence of Events at Closing
The homebuyer furnishes a cashier's check to cover all outstanding closing costs and fees.
The property title shifts from the homeowner to the buyer, indicating a change of ownership.
The closing agent (or attorney) officially records the new deed with local authorities, establishing the homebuyer as the legal property owner.
Real estate agents involved in the transaction receive their corresponding commissions.
After settling their mortgage balance and closing expenses, the seller receives their earnings from the sale.
Real estate transactions inherently involve an abundance of documents that need to be signed, dated, and/or notarized. Fortunately, the escrow officer or closing agent are the ones who diligently prepare the necessary documents, making them ready for the buyer's signature.
A Few Important Points to Keep in Mind
Pay attention to the ink color you use to sign and date the documents, as different lenders may have preferences (some want blue, others prefer black).
Sign documents exactly as your name appears on the loan documents, even if it differs from your usual signature.
From the Homebuyer's perspective
For homebuyers, the signing process involves signing various documents, including the bill of sale, property deed, mortgage agreement and note, closing disclosure, and transfer tax declaration.
Once the buyer concludes signing all the documents and the funds are distributed accordingly, the property deed transfers from the seller to the buyer.
If it's a joint closing (buyer and seller present at the same location) it is time for the seller to hand over the keys! It's a moment worthy of celebration and pictures - You are now a proud homeowner!
As you approach your real estate closing, remember that this process involves rigorous documentation and validation. Notary services are instrumental in ensuring the legality and binding nature of your documents.
For a seamless closing experience, contact us via phone at (786) 396-3018 and also via email at inknotary@hotmail.com
We are committed to serving you with excellence.
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