CLOSING TIPS

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Whether you are purchasing a home or selling a house, knowing what to expect and being prepared at the "closing" can help eliminate stress and result in a pleasant experience. We understand how important this transaction is to you, and we are committed to consistently providing a level of service that prepares you for this final step in your real estate transaction.

Although the settlement process can vary from state to state, here are some common items that may be required from you at closing and can help your closing go as smoothly and quickly as possible.

VALID PHOTO IDENTIFICATION

Two forms of identification are typically required at closing, including one of the following:

- Valid U.S. drivers license or non-driver ID

- Military ID

- Valid Canadian or Mexican drivers license issued by the Official Agency

- Current United States or Foreign Passport ( Foreign Passport must have been stamped by U.S. Immigration and Naturalized Service)

WIRE TRANSFER

In the event you are required to bring funds to closing, please contact us for bank routing instructions to wire the funds. If you will be bringing a proceeds check from another settlement, please contact us to verify the acceptance of those funds - we do not automatically accept all checks. 

NOTE: If you receive an e-mail or any other communication that appears to be generated from our company that contains new, revised or altered bank wire instructions, consider it suspect and call our office at a number you trust.  Our bank wire instructions seldom change.

ALL PERSONS WHO HOLD TITLE TO THE PROPERTY OR WHO WILL BE PURCHASING THE PROPERTY MUST ATTEND CLOSING TO SIGN DOCUMENTS

State-specific laws may require the spouse of the parties in title, even though their name does not appear on the deed, to sign certain documents when obtaining a mortgage. If anyone is unable to attend closing, contact us to arrange a Power of Attorney or cls

We understand that by keeping you informed and helping you prepare for the closing day, the more likely you will have a stress-free closing experience. Our courteous and professional staff is proactive in their communication and works diligently to ensure the orderly and efficient transfer of real estate...and we do it with a level of service and friendliness that is hard to beat in this industry.

1. CHANGE YOUR MARITAL STATUS

How you hold title is affected by your marital status. Be sure to make both your lender and the title company aware of any changes in your marital status so that documents can be prepared correctly.

2. CHANGE JOBS

A job change may result in your loan being denied, particularly if you are taking a lower-paying position or moving into a different field. Don't think you're safe because you've received approval earlier in the process, as the lender may call your employer to re-verify your employment just prior to funding the loan. 

3. SWITCH BANKS OR MOVE YOUR MONEY TO ANOTHER INSTITUTION

After the lender has verified your funds at one or more institutions, the money should remain there until needed for the purchase.

4. PAYING OFF EXISTING ACCOUNTS UNLESS YOUR LENDER REQUESTS IT

If your Loan Officer advises you to pay off certain bills in order to qualify for the loan, follow that advice. Otherwise, leave your accounts as they are until your escrow closes.

5. MAKE ANY LARGE PURCHASES

A major purchase that requires a withdrawal from your verified funds or increases your debt can result in your not qualifying for the loan. A lender may check your credit or re-verify funds at the last minute, so avoid purchases that could impact your loan approval.

To help defend against forgery and fraud, state notary laws include requirements that parties signing documents in a real estate transaction must provide acceptable forms of identification. Although specific requirements may vary from state to state, here is a general overview of the types of identification that are typically used to substantiate and affirm identity.

ACCEPTABLE IDENTIFICATION DOCUMENTS

One or more of the following may be requested to verify identification. The document must be current and contain the signer's photograph, physical decription, signature, and bear a serial or other identifying number.

+Valid Driver's License or Non-Driver ID issued by any state

+United States Passport

+Valid United States Military ID

+Foreign Passport stamped by the U.S. Citizenship and Immigration Services (USCIS)

+Valid Canadian or Mexican Driver's License issued by the Official Agency * (Not accepted in all states)

UNACCEPTABLE IDENTIFICATION DOCUMENTS

-Driver's License without a photograph

- Social Security Card

- Employee ID Badge

-Permanent Resident ID Card

Closing document signatures must match the name tha appears on the identification presented. An abbreviated form (John D. Smith instead of John David Smith, for example) may be acceptable. However, deviation is only allowed if the individual is signing with less than and not more than what is on the identification document. If your name has changed, or will change, prior to the closing, documentation must be provided to support the change.

Purchasing a home can be a rewarding experience, but there may be delays in the closing due to situations that could have been avoided.  Although closing procedures vary from state to state, having an understanding of what may be required at closing and preparing accordingly will help your settlement process go as smoothly as possible.

LENDER REQUIREMENTS

Your lender may require additional documentation or inspections (roof,septic, water, etc.) in order to comply with loan underwriting requirements. To expedite the processing of your loan, submit all lender requested documentation in a timely fashion.

BUYER PROTECTION PLAN

If a home warranty product is being provided and shown on contract, advise the closing agent of the purchase amount to be collected.

HOMEOWNERS INSURANCE (Hazard/Flood)

Your lender will require a copy of the policy(s) and a paid receipt prior to closing. The lenders full name and address must be shown on the policy.

CONDOMINIUM APPROVAL

Written approval of the sale may be required from the Condominium Association. Your closing agent must have this approval from in order to close. Be sure to make application early in order to avoid any delay in closing.

POWER OF ATTORNEY

The use of a Power of Attorney must be approved in advance of settlement by the closing agent and your lender. If you are planning tp use a Power of Attorney, inform the closing agent as soon as possible to allow time to properly review the document.

MARITAL STATUS

Spouses may be required to sign certain closing documents even though they do not intend to hold title and their name will not appear on the deed. Check with your closing agent and lender to see what documents you and your spouse will be required to sign at closing.

MAIL-AWAY

If you are unable to attend the closing, provide the address where the closing documents should be mailed and a contact phone number. Your signature on certain affidavits, loan documents and other closing documents may require the services of a notary.

When the housing crisis and economic recession hit, it put many prospective homebuyers plans on hold, forcing those considering purchasing a home into the rental market. Now, as the economy continues to improve, some of those renters are looking to own.

However, there are many factors to consider when buying a home. When it comes to the closing process, it is a good idea to know the terminology that will be discussed. This can help make the situation much more comfortable and professional for all parties involved. Below are some of the terms that may be discussed during the closing process.

ANNUAL PERCENTAGE RATE (APR)

This term reflects the cost of all credit and finances as determined by the length of a year, including the interest rate, points, broker fees, and other credit charges obligated to the buyer.

PRIVATE MORTGAGE INSURANCE (PMI)

PMI is typically required if a borrower puts a down payment that's less than 20percent of the home's value. The change is usually included in the monthly mortgage payment in an attempt to protect the lender from possible default.

DOWN PAYMENT

Like many transactions involving large sums of money, the mortgage process involves a down payment - the amount a homebuyer pays in order to make up the difference between the purchase price and the mortgage amount. Some experts advise no less than 10 to 15 percent. However, with many lenders still stringent, any amount over 20 percent of the purchase price is recommended, and is often required to avoid having to pay for provate mortgage insurance.

CLOSING COSTS

Closing costs may also be referred to as transaction costs or settlement costs and may include various fees and charges associated with finalization. These may include or be related to application fees, title examination, title insurance, property fees, as well as settlement documents and attorney charges. The Real Estate Settlement Procedures Act ensures that the borrower receives a good faith estimate of closing costs within three days of application from the lender, which states in detail each expected cost.

TRUTH-IN-LENDING DISCLOSURE (TIL)

Required by federal law, the Truth-In-Lending Disclosure explains all lender required costs for the loan including, but not limited to, the annual percentage rate, the terms of a loan and the amount and due dates of all payments necessary to repay the loan

Submit the purchase agreement and other documents included to Builders Title Company.

If the buyer is obtaining and appraisal and the appraiser has not made contact within a few weeks to schedule a walk-through, notify the buyer.

Provide Builders Title Company with the name of the mortgage company and the loan number for each mortgage filed against the property.

Upon receipt, review the Title Commitment and assist Builders Title Company with clearing requirements, if any.

Review inspections upon receipt and negotiate repairs with Buyer, if applicable.

Submit repair invoices (if any) to Builders Title Company as soon as possible prior to closing.

Make arrangements with Builders Title Company to sign closing documents with your spouse (if applicable). you will need to bring a valid (current) government issued picture ID (driver's license, military ID, passport, etc.) to the appointment.

Contact Buyer to make arrangements for final walk-thru prior to closing.

Transfer utilities as of day of closing/possession.

Make arrangements with Buyer for key exchange.

Contact insurance agent to cancel homeowners insurance.

Cancel automatic payments, if any.