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Closing

 

Prepare for Closing Day

In preparation of Closing Day, there are a few loose ends to tie up.

Home Services and Utilities.

We will provide a list of useful numbers for the activation of home services and utilities. You will need to contact these companies and schedule services to be put into your name effective the day of closing. Remember to also cancel all services at the home you are vacating.

Final Walk-Through Inspection.

More of a formality than anything else, the final inspection takes place a day before, or the day of the closing. You will visit the property to verify that all is in working order, everything is the same as when you last viewed the property, that there are no extra items left behind, and that everything included in your purchase is still at the property.

Closing

If you are financing your purchase, your lender must, according to TRID, provide a Closing Disclosure detailing the costs and terms of your mortgage at least 3 days prior to closing for your review.  If, prior to closing, any changes are made to the Lender’s Closing Disclosure that result in (1) the APR becoming inaccurate; (2) the loan product information required to be disclosed under the TRID Rule has become inaccurate; or (3) a prepayment penalty has been added to the loan, a new three business-day waiting period is triggered, and the creditor must wait three business days after you receive the corrected Closing Disclosure to consummate the loan. TRID is a mortgage lending rule that was designed by the Consumer Financial Protection Bureau (CFPB) to make the mortgage process more transparent, reduce fraud, and help borrowers hold lenders accountable by harmonizing the Real Estate Settlement Procedures Act (RESPA) and Truth in Lending Act (TILA) disclosures and regulations.

Be sure to bring your Driver’s License to Closing

The closing agent will furnish you with a settlement statement that has been reconciled with the Lenders Closing Disclosure. The Settlement Statement summarizes and details the financial transactions enacted in the process. You and the seller(s) will sign this statement, as well as the closing agent, certifying its accuracy. If you are obtaining financing, you will have to sign all pertinent documentation required by the lending institution. If you are unable to attend the scheduled closing, arrangements can be made depending on the circumstances and the notice that is given. If you are bringing funds to the transaction, you will need to have the funds wired electronically into the closing agent’s escrow account in the amount specified on the settlement statement. The seller should arrange to have all property keys and any other important information for you at the closing so that you may receive these items at this time.

The property taxes will be prorated on the settlement statement. You will receive a credit from the Seller for the time they owned the property. When the tax bill comes due, you will be responsible to pay it in full. The property will be re-assessed by the County with the new sale.

Once all documents are signed and the wire transfers from both you and from your lender have been received, the file will be “Closed and Funded”. At this point you may take your house keys and start enjoying your new home.

If this home is now your primary residence, be sure to file for Homestead Exemption with the County Property Appraiser. This will reduce your property tax liability.