While the settlement is the final step in the closing process, there are a few events that must occur first before the buyer and seller can officially complete the sale.
A final buyer walk-through will trigger the closing process. The purpose of the final walk-through is to check the condition of the property and to confirm that any agreed-upon repairs have been done. This typically happens within five days of closing. The seller should have the house move-in ready with all manuals and operating instructions available for the buyer.
The lender then gives the buyer the final loan estimate with the closing loan fees and the closing disclosure to satisfy the three-day review period.
A title or escrow company will typically be where the closing takes place. Which state the transaction is occurring in will determine which parties will attend the closing. Attendees may include the title or escrow officer, the loan officer, the listing and selling agents and any real estate attorneys. In states that allow electronic closings, involved parties will execute required documents remotely and digitally.
The buyer must present funds for closing costs and the down payment. This is typically 3% to 5% of the loan amount for loan fees plus the down payment amount. On the seller side, the net proceeds to the seller will reflect deductions for a loan payoff, real estate commissions, escrow and title costs, and prorated taxes and fees.
For in-person closings, buyers need to bring photo IDs and proof of closing funds. The seller will bring all keys and remotes to the table. Buyers and sellers should have some communication regarding the transfer of utilities and any agreed-upon services.
A successful closing is the goal of every transaction. Please contact me for assistance with any buying, selling, or mortgage financing questions.