THE FULL SCOOP ON YOUR CLOSING!
Before your loan is finalized, the closing agent will request a number of documents from the various participants involved in the real estate transaction.
For example, the closing agent will need to obtain the following from the realtor:
- Sales contract on the property
- Termite inspection documentation
- Names of gas, certification, and home warranty companies
- Information on attorneys and lenders
- New homeowner’s insurance information
The closing agent will also collect several documents from the lender. These include:
- The complete loan package
- Closing instructions
- Detailed requirements for disbursing the funds
Once the closing agent has all of this information, he or she will prepare a CLOSING DISCLOSURE, all required affidavits, loan documents, and other closing documents.
At the Closing
When closing on your home, you will meet with the closing agent to finalize all necessary documents to purchase the property. While the closing agent will bring almost everything you need, it’s a good idea to bring all of your paperwork with you on the closing date. Most importantly, you’ll need your homeowner’s insurance policy and proof of payment to closing, as well as a certified check for the negotiated closing costs. (BEWARE OF WIRE FRAUD - YOU WILL NEVER BE EMAILED AN ASKED TO WIRE FUNDS - THIS INDICATES A SCAM AND YOU SHOULD CONTACT YOUR CLOSING AGENT IMMEDIATELY!)
Once the buyer and seller are in agreement that all paperwork is in order, the closing agent collects all disbursement checks, including those to cover closing costs. The closing agent also acts as escrow agent, establishing an escrow account if the lender agrees to cover the borrower’s annual property tax and insurance fees.
As the buyer, you should walk away from closing with copies of the Closing Disclosure, Truth-in-Lending Act statement, mortgage note, mortgage deed of trust, the title insurance commitment, certificate of occupancy, and keys to your new home.
After everything is signed, the closing agent still has work to do. He or she finalizes all deposits, wire transfers, and checks, recording the deed and the mortgage at the courthouse or county recorder’s office. You are the legal homeowner on the date the deed is recorded. Once these documents are recorded, the closing agent mails the buyer the original recorded deed and mails the original mortgage document to the lender.
The closing agent then prepares title policies for both owner and lender. There are many moving parts when it comes to buying a home, and while the closing agent is the one who pulls them all together at the critical last step, it’s important to have your ducks in a row before your closing date arrives.
TOD'S TIP: Pilgrim Title Insurance Company offers all of these services - as well as a positive, personalized experience. We take pride in our accessibility and responsiveness.