What to Expect on Closing Day
You are almost there!
The most exciting day when purchasing a home is the day that you finally get to close on your home and receive the keys. Whether stressful or a breeze, this is the day that you have been working towards. Before you get to call that house your home, you will need to sign some very important papers to close the deal. Closing day is going to be a busy one with your mind moving in all different directions, but it is important to know what will happen so that you can be prepared.
Generally, the closing will happen at the office of the settlement agent (we call this the Title Company), or closing may take place at my office or a place of your choosing, if you happen to be otherwise occupied or out of state. I love to attend closings by your side - and you will also be meeting the title agent or a notary. We are your closing resource, if you should have any last-minute questions.
In Texas, we do not close at the same table as the other party. Buyers and Sellers are typically kept separate, and often never meet face to face.
You will need to be sure to bring your ID. Your lender will have discussed with you whether you are wiring the down payment or bringing a certified check for the amounts due. These numbers are usually discussed with you well in advance, so that you are properly prepared.
You can then read through, ask questions about, and sign the loan documents that your lender has prepared for you. Included in this paperwork is going to be your Closing Disclosure (which would have been provided to you before closing), the promissory note (which says you will repay the lender for the loan amount that you are borrowing), and the deed of trust (also known at the lien on the property). If you have questions about these, please do not hesitate to ask.
My goal is to make sure you feel fully prepared for what will occur at the closing table. It is a time to bring your best handwriting game, as you will have quite a few signatures to pump out.
Immediately following the closing, the Title Company will send their funding department scans of the documents deemed by your lender to be “funding conditions”. The lender will review these documents and authorize the funding of the transaction. This process typically takes 3-4 hours after closing. When funding authorization is received, the Title Company will pay all invoices associated with the transaction, pay off the seller’s loan (if necessary), release any monies that are payable to the buyer or seller, record all relevant documents at the appropriate courthouse and generally finalize the transaction. And if you are Selling, proceeds can be picked up, mailed, electronically wired and, in certain cases, directly deposited into your bank account.
Generally it is at this point that the deal is officially 'Closed' and ownership and possession of the property is transferred from the seller to the buyer.
Within several weeks of the closing, the title policies associated with the transaction are issued and sent to the appropriate party. Additionally, the recorded documents are forwarded to the buyer, seller, or lender by the County Clerk’s office after they are recorded.
We will talk often before then, and I am happy to answer questions you may have and do my best to make this a stress-free process for you.