The Closing Process

Finally…it’s over.
(or just beginning, depending how you look at it)

Whether you are a buyer or a seller, closing is the day when it all comes to an end.  (and we get paid – so we like closing days, too)  There is nothing to be worried about…

The closing process is actually a rather simple one – for us anyway. There are these wonderful things called Title Companies that research the property to make sure there are no encumbrances or leins on the property.

They also collect all the information from the fees already collected, such as the earnest money check, and figure out how much is due for commissions, lender fees, the county for taxes, etc, etc, etc. They will bring all the charges and dues together, and pay here and collect there and pay and collect. In the end, everything due on the property is paid, the expenses are paid for both buyer and seller, the seller gets the net proceeds and the buyer walks away with the keys to a new home. (and a new mortgage, but we don’t like to talk about that part)

All of this information is put together on a settlement statement called a HUD-1. Usually things go well so that a copy is sent to us for review a few days prior to closing day, to make sure everything is correct, and then call you with the estimated proceeds or closing costs due.

For a buyer, the whole process may take half an hour to an hour, depending on how many jokes we make. The lender is generally there to answer any questions, with the closer of the Title Company guiding the way.  You will need to bring some sort of picture ID and a cashier’s check for the amount due (if any).  Oh – and don’t forget your signing hand.

For a seller, the deed must be signed by the owners to transfer the deed to the buyers, along with a certificate of real estate value and the HUD1. This can be done prior to closing, if desired.

All in all, closing is a pleasant experience for everyone.

-  Tristan and Sarah