Preparing for closing will save you time and inconvenience and smooth the way to move in to your new home.
Once all the contingencies in the contract such as title, inspection, appraisal, loan commitment and survey issues have been met, and the lender has issued a loan commitment and approved your loan, your loan and real-estate transaction can be finalized, or closed. This section explains what happens before and at closing.
What Happens at Closing
In Colorado, the closing is conducted by a title company and usually takes about an hour. Buyers, sellers, realtors and some lenders attend the closing. At closing, you and the seller sign all necessary documents to transfer ownership of the property and record the mortgage and deed information. The seller only has a few documents compared to the buyer who purchases with a new loan. Typically, the loan package is also finalized at closing and takes the most time. You will receive a copy of all closing documents and be given the keys to your new home!
RESPA (Real Estate Sales Procedures Act) requires that the lender and title company provide you with closing figures 24 hours prior to your closing. This does not always occur in our marketplace due to the speed with which our contracts customarily close (30 days or less). Nonetheless, I will endeavor to have your figures made available as early as possible so any errors can be addressed and you have the opportunity to obtain funds well in advance of the closing. RESPA does not allow rebates/fees back to unlicensed persons.
You will be expected to have a cashier’s check or certified funds for your final down payment and closing costs. Because Colorado is a cash or “good funds” state, all funds made payable at closing must be good funds such as a cashier’s check or wire transfer. In most cases, cash, personal checks and trust account checks are not accepted by title companies.
If you are planning on wiring any portion of proceeds (down payment, closing costs or the mortgage itself), please let me know as soon as possible so we can make certain that the wire has not only been sent on your behalf but has also been registered with the title company. Remember, this is called a closing, which means that all sales are final and must be finalized at this appointment. This includes all monies, signatures and amendments to sale.
If You Can’t Attend Closing
If you are not able to attend the closing, please let me know as soon as possible. I cannot sign for you by company policy. If there are multiple buyers and only one can attend closing, you can use a Power of Attorney (POA). The title company must create or approve an existing POA and the original, notarized version must be present at closing.
The title company can also overnight a package to you with instructions for signing. You may have to sign some documents in the presence of a notary public and then overnight them back to the title company. You can call prior to signing and get explanations of anything about which you have questions.
What to Do Before the Closing
There are a number of things you need to accomplish to ensure a smooth closing. Follow the checklist below. As always, if you have any questions, I’m only a phone call away!
To Do List:
- Make an appointment for walk-through at a time that is acceptable to all parties.
- Arrange for homeowner’s insurance with your insurance provider by the contract inspection objection deadline.
- Transfer all utilities and phone service into your name.
- Review the contract, title commitment and applicable covenants.
- If required for the closing, have a power of attorney prepared by the title company.
- Arrange for a money order, cashier’s check or wire transfer for settlement costs.
- Bring your driver’s license or photo ID to closing for identification.