Navigating the Closing Procedure for Home Buyers

The closing process, which in different parts of the country is also known as “settlement” or “escrow,” is increasingly computerized and automatic. In many cases, buyers and sellers don’t need to attend a particular event; signed paperwork can be sent to the closing agent via overnight delivery.

If you want to know how much your house will sell for in South Florida, Broward County go to Home Value or call Irene Medina.Realtor at 954-439-4851. 

 

In practice, closings bring together a number of people who are part of the deal. For instance, while the history of residential property ownership has been verified, it is likely that the records contain errors, unrecorded claims or imperfections in the analysis itself, thus title insurance is necessary. At closing, transfer taxes has to be paid and other claims must also be settled (including closing costs, legal fees and adjustments). In nearly all transactions, the closing agent also finishes the paperwork essential to record the mortgage.

What to Expect

Settlement is a short process where all of the essential documents needed to complete the transaction is signed. Closing is typically held in an office setting, often times with both buyer and seller in one table, sometimes with each party accomplishing their papers separately.

Whatever the case, the result is that title to the property is transferred from seller to buyer. The buyer receives the keys and the seller receives payment for the property. From the amount credited to the seller, the closing agent subtracts money to pay off the existing mortgage and other transaction expenses. Deeds, mortgage papers, and other documents are prepared, finalized and filed with local property record offices.

What You Need to Do

One of the best parts of settlement is that buyers and sellers need to do very little.

Prior to closing, buyers usually have a final opportunity to walk through the property to assure that its condition hasn’t changed materially since the sale agreement was signed.

At the closing itself, all papers have been prepared by closing agents, title organizations, loan providers and lawyers. This paperwork demonstrates the sale agreement and allows all parties towards the transaction to verify their interests. For instance, buyers get the title to the home, loan providers have their financial loans recorded in the public records, and state governments collect their transfer taxes.

Knowing the Closing Process

When your offer on a house has been accepted, your inspections are complete, and your financing is in order, you will likely breathe a sigh of relief and get concentrated on packing for the move.

But before you are handed the keys to your new home, you will be required to attend the settlement or closing. The more you understand about the closing process, the easier it should be.

Getting Ready for Closing

If your team of professionals—particularly a REALTOR® and your lender—have been providing you with good service throughout your home search, you have to be well-prepared for settlement.

Basically, settlement day involves the formal, legal requirement of transferring ownership out from the seller to you.

Settlement regulations vary from one jurisdiction to another, but two aspects of the process are usually the same no matter where you buy a home.

• Your contract should allow you to schedule a walk-through of the property 24 hours right before the closing. At this walk-through, you need to make sure the seller has completely vacated the property (unless you have arranged to rent back the property after closing) and the home is in the condition outlined in the contract. Look to make sure any needed repairs have been made and stuff that are contractually supposed to convey to you are in place. If the walk-through reveals any problems, you could postpone the closing or ask for funds from the seller to address the issues.
• You have the right to receive the HUD-1 settlement statement for analysis 24 hours prior to your closing. Compare the HUD-1 statement towards the Good Faith Estimate your loan provider provided to ensure that they’re alike and get your lender to explain any discrepancies between the two files.

What You Need at the Closing

During the entire home search, you have likely accumulated a lot of documents. Bring these documents with you to the closing just in case an issue arises and you need to produce one of them—particularly your proof of homeowner’s insurance coverage and your copy of the contract.

Bring your identification and discuss with your loan provider how you’ll make the down payment and settlement costs that are not rolled into your mortgage. You might be able to move these funds digitally based on a quote right before the closing, but you may also be required to provide a cashier’s check or certified funds.

You should bring your checkbook, too, for the distinction between the calculated balance due and the final amount.

What Goes on at the Closing?

As a buyer, you will sign a collection of legal papers including documents related to your home loan and paperwork relevant to the shift of ownership of the home. You’ll also pay settlement costs and fees and the initially required escrow payments for your homeowner’s insurance and property taxes.

Traditions vary by location, but at closing, there’s typically a representative from a title company or a attorney. In some cases, both the seller and buyer will have an attorney present. Usually your real estate agent will attend your closing and usually the seller’s agent and the seller will join as well. Some loan providers attend the closing, but others simply provide the loan documents to the title company.

When your closing is completed, you should not only have your keys to your new home, but you also need a collection of paperwork for future tax statements and when/if you eventually sell the property. These documents include your final HUD-1 statement, your Truth-in-Lending statement outlining your mortgage terms, your mortgage note and your deed of trust.

Here’s a Summary of the Closing Process for Buyers:

1. After you and the seller sign and agree on the terms of the purchase of your home, we have an executed contract.
2. Any earnest money you have agreed to is deposited in an escrow account.
3. The executed contract is sent to the title company which helps determine whether the seller has the right to sell the property to you.
4. If there is an option period, you can inspect the property during this time. Any repairs the seller agrees to should be completed with receipts before closing.
5. The title company will collect all the necessary documents.
6. When we close, we’ll work from a document known as HUD-1 Settlement Statement. The HUD-1 Settlement Statement tells you the charges associated with the purchase of your home.

It’s a lot to know, but don’t worry, I will follow up with you to ensure all these steps happen on time and in the right order. And, of course, you can always reach me at 954-439-4851.

When you hire Irene Medina and The Medina Group, you hire a team of professionals that will “Stand by YOU Every Step of the Way” from start to finish. We pride ourselves in making sure that we keep your goals top of mind at all times and keep you informed at all times. Please read our reviews from happy clients on this site, as well as our blog.

We are in a sellers market again and you need a team that is very savvy when it comes to marketing your home. It is not a matter of just putting a sign on your home and putting in on our Multiple Listing Service. Our marketing is very internet intensive driven and we implement The Ballen Method on every property. 90% of all buyers find their home on the internet before they call a realtor. We make sure that your house is FOUND by the majority of buyers. Some of our marketing techniques are the following: We take a professional virtual tour of your home to put on the internet, along with various websites, individual property websites, social media sites and all the other popular sites. We also advertise to the international market. We market to all realtors in your area and to the surrounding neighborhood. We make sure you get the highest and best offer for your home. Their reputation of being a top notch real estate group is well known in the real estate industry. Your chances of getting your house sold quickly and/or your offer being accepted is greatly increased when you use The Medina Real Estate Group.

For Your FREE Home Value go to: Home Value

If you need to short sale your home, please go to:www.FLShortSaleServices.com for information on short sales and to calculate if you have equity in your home now or still need to short sale. We have a proven track record of approved short sales and deficiency waivers.

If you are a buyer looking to buy a home, we pride ourselves in making sure we listen to what your dream home consists of. It is all about you and your future home. We put YOU first! Go to: www.IreneMedina.net 

Irene Medina has been in the business of selling and buying real estate for more than 10 years. She became a short sale specialist and helped many homeowners avoid foreclosure and have their deficiencies waved when the market dropped. Market has shifted again and she continues to excel as a Listing and Marketing Specialist to help you get the most for your home in the quickest amount of time, with the least amount of stress! Irene and her team are an award winning team. When you choose Irene Medina and The Medina Group, you choose a team that will always put YOU first.

If you need to Short Sale your home, please go to www.FlShortSaleServices.com.

If you are a buyer looking to buy a home go to www.TheMedinaRealEstateGroup.com.

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Irene Medina / Realtor This email address is being protected from spambots. You need JavaScript enabled to view it. / 954-439-4851 The Medina Real Estate Group www.TheMedinaRealEstateGroup.com

 

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