Preparing for the Closing

When you consider the myriad details involved in moving, it’s not surprising that one or two items remain unresolved until day of closing. Unfortunately, this is the normal course for most transactions. So, just try to remember to address each item one at a time and, in most cases, it will all fall into place. A good real estate profession can prepare you for the basics, so that those last-minute issues can receive your full attention:
Title commitment - Whether a buyer or seller, you should be able to review a title commitment prior to closing. This commitment will specify 1) what the title insurance covers, 2) list the recorded liens against the property, 3) show how it is titled and 4) any exceptions to coverage. When selling a property, you can ask your agent to order a preliminary title search at the time of listing. This should bring to light any unreleased mortgages, judgments, or other clouds on your title and give you time to resolve issues in advance.
Surveyor location report – This report reveals how the improvements are situated upon the land, informs them whether the property is located in a flood hazard area, and outlines possible encroachments. A seller ordering one of these at the time of listing would give them an opportunity to correct (or at least disclose) problems to the buyer at the time the contract is negotiated. It is a good idea for any buyer (unless they are buying a condo) to request a survey on their property. A surveyor location report usually costs around $150-$175 and is a small investment for peace of mind.
Mortgage documents – If you thrive on the nitty-gritty details, you can request your lender send a sample loan package for review. This allows you time to read each document in detail prior to closing. And, you have time for your lender to explain each document’s purpose and ramification. Then, at closing, you will sign the actual documents and the title company should give you a set of every document you sign at the table. When selling, you should review your current mortgages and lien holders. You can contact them to confirm how much you will owe and if any prepayment penalties or other fees apply when selling your home. They can give you your payoff as of the date of your closing, and explain their policies about applying escrowed funds to the balance due. If your agent or lender does not offer these documents to you prior to closing, ask for them. We recommend allowing two (2) weeks to review them so all your questions can be answered and any problems resolved in advance.

Other items that you will need for closing include:
Homeowner’s Insurance – Not only will you need to pay a full year’s premium in advance, but several months may be charged at your closing to fund your escrow account. Bring a copy of your binder and paid receipt for 12 months of coverage to the closing.
Picture ID – it necessary for the closing agent to verify your identity, so bring a valid picture ID.
Certified funds – any money to be brought to closing should be in the form of cashier’s check, certified check, or postal money order. Make the checks out to yourself, and then endorse them at closing. This includes any negotiation for lease backs, repairs, pro-rations for unused fuel, or personal items purchased from the seller.

If you have questions about moving, building, selecting your first home or moving up to your next home, contact DAVID BRENTON’S TEAM.

When you are serious about moving… put our TEAM to work for you!