When you bought your home, you probably had plenty of resources to tell you what to expect at closing, from first-time homebuyer counselors to agents to internet articles. But now that the shoe is on the other foot, you may have a rough time gathering the information you want about the closing process. Our real estate agents want to address all your questions and concerns.
- What is closing?
The final step in executing a real estate transfer is closing. The process began when you accepted and returned the purchase agreement. Closing is the final deadline to complete the transaction, which was pre-set during the negotiation period. Both buyer and seller will sign the closing documents, and the buyer will take possession of the home. Both parties must comply with all requirements to ensure a smooth transition.
- What are the roles of the participants?
- The seller provides the closer with the executed deed and other required documents, such as tax receipts, mortgage holder address, social security number, and a forwarding address for IRS reporting. If the proceeds are insufficient to complete the cost of the transaction, the seller must deposit funds to do so. A current government-issued photo ID is also required.
- The buyer deposits the necessary funds via cashier's check or wire transfer. The buyer also executes and deposits the note, mortgage/deed of trust, and other documents necessary to secure the loan. At this time, the buyer must fulfill any other conditions specified by the escrow and/or the lender's instructions. The buyer must also provide current government-issued photo identification.
- The lender deposits the loan proceeds on behalf of the buyer and instructs the closer on any conditions restricting the use of the loan funds.
- The closer initiates the order for title insurance and receives all funds. The closer disburses real estate commissions from these funds and pays any fees associated with the transaction. The closer prepares final closing documents, including the deed and affidavits, as well as a final settlement statement for each party with a breakdown of amounts required to close escrow. The closer records the deed and mortgage and delivers them to the buyer.
- When and where does closing take place?
The closer will generally host a meeting at the closer's office. Final documents will be reviewed and signed, and funds deposited. However, the seller may meet a few days before closing at a convenient time. This allows both the buyer and seller to meet without having to coordinate schedules. The seller's part in the process will probably take about 30 minutes. It is possible that the seller may not have to attend in person if the deed and other documents are pre-signed or if the seller chooses to give power of attorney to an attorney to sign any incidental documents.
- What happens after the closing?
At the closing, the seller relinquishes the property. Unless both buyer and seller have entered a contract stating otherwise, the seller is expected to have vacated the home and left the dwelling clean and ready for the buyer to move in. The seller should give the buyer all keys and garage door openers. If there is any possibility that the seller cannot meet the deadline, it may be possible to negotiate a rent-back agreement with the buyer.
Contact us if you're considering adding your home to the inventory of Wichita homes for sale. Our real estate professionals will help you navigate the process from beginning to end.