Real Estate Closing

How to prepare for an efficient closing

The settlement or closing process is the final stage in a real estate purchase. The date for the closing is often set during the initial negotiations and is several weeks out from the acceptance of the offer. This time not only allows for the seller to complete the moving process and vacate the property, but also provides the necessary time to set up the financing for the buyer and complete the process to acquire a mortgage loan.

Prior to closing

At least three days prior to closing, your lender will provide you with the closing disclosure. This form will detail the terms of your mortgage loan. You will see details including: projected monthly payments, a breakdown of principal and interest of your payments, private mortgage insurance (PMI) cost, property taxes, and insurance fees. The documents you sign on closing day should match these documents. If there are any changes, you should be made aware of those prior to initiating the closing event.

Your lender will also require proof of insurance for the property. You will need to contact the insurance company of your choice and take out insurance for your new property. The policy will protect your property if it is destroyed or damaged.

What to bring to a real estate closing?

Everyone who is signing the paperwork for a closing should bring a government issued photo ID. A drivers license or passport qualifies for this identification. Whether you are the buyer or the seller, you need this identification so that the title company can confirm you have the legal right to buy or sell the property. It is also wise to have a second identification that matches the first form. This could be a social security card, credit/debit card, insurance card, etc.

If you are the buyer, the title company will contact you prior to the closing date to tell you how much cash to bring to close. You will need a cashier’s check or wire funds for this expense. A personal check or cash are not acceptable. You can get a cashier’s check from your bank. A cashier’s check has been certified by the bank that you have enough money in your account to cover the expense. If you are wiring funds, please be sure to always verbally confirm the details on where to wire the funds. Do not ever wire funds based on a text or email communication as you don’t want to be a victim of fraud.

What happens at the real estate settlement?

A closing takes about an hour to execute. With Blue Ridge Title Company, this process runs quite smoothly. The team will discuss with you the full terms of the settlement prior to the closing. The actual settlement should be adding signatures to terms of which you have been made aware. Once your identity has been verified, the closing agent will walk you through each of the documents and detail how you should sign. The agent will confirm your payment fully covers the closing costs, and if you are the buyer, you will be handed the keys to your new property once complete.

Blue Ridge Title Company is your local Morristown attorney owned and operated title company. Our team is here to service your residential and commercial real estate needs. We are efficient, knowledgeable, and experienced in the real estate closing process. Please reach out to our team for an effective and timely closing.