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 Dayton Mortgage Bankers Association
 

Closing The Sale

Ready – Set – Close!

You've found the perfect home, the terms have been agreed upon, the contract has been signed, FMBC has processed and approved your loan.

Now it's time for the title request to go to the title and closing company. FMBC will ask if you have a preference for a particular company.   Just as it was "your choice" of which real estate agent had the most to offer you and which lender offered the best financing, it can also be "your choice" as to which closing company can provide you with the best service.   If you are unsure of which company to use, FMBC or your Realtor will help you pick a reputable firm to get the job done!

What Happens Next?

    1. When the Title Company receives a title request, a file is immediately opened.

    2. The Title Search Department will conduct a search of the Public Records to determine who owns the property, who has liens on it and if there are restrictions on how the property can be used by the owner. From this report, it will be determine what is required to clear the title so that the lender will obtain an insurable interest in the property. As the purchaser, you will receive marketable title through the purchase of an Owner's Title Policy.

    3. If required by your lender, a Mortgage Survey Inspection will be ordered from a licensed surveyor/engineer. When the drawing is received, it will be reviewed  to determine that all improvements, including buildings and fences, are within the boundary lines and there are no encroachments for set-back lines or easements.

    4. A payoff of the seller's existing mortgage will be ordered from their current lender to be collected at closing along with payment of property taxes and any other liens that may appear on the title search in order to clear the title.

    5. A Commitment for Title Insurance from information shown on the title search will be prepared and faxed or e-mailed to the lender for their review. The commitment will provide them with pertinent information including the current title holder, a correct legal description of the property, any and all easements and restrictions, as well as a summary of what is required to transfer title. These requirements typically include the execution of a Warranty Deed, the payoff and release of any liens or judgments, and the payment of property taxes.

    6. Once your loan is approved, the lender will notify the settlement coordinator assigned to your file and the title company will coordinate with you and your agent a convenient closing date and time. The lender will overnight or e-mail their loan closing paperwork to the title company and they will prepare the remaining documents necessary to complete the package to be executed by all parties.

    7. When the day of the closing has arrived, all parties meet at a convenient location to sign the paperwork and transfer the keys. A closing associate will provide explanations of the documents you will be required to sign and will insure that all the terms of the contract have been met including all of your requirements. After all signatures have been obtained and all requirements are met, the funds for your final amount of closing costs and down payment will be collected. Net proceeds to the sellers and commissions will be disbursed and if occupancy is at closing, the keys are turned over.  If not, phone numbers should be exchanged between buyer and seller to make arrangements for turning over the keys at a future date.

    8. After the closing, the remaining funds are disbursed to the designated parties for the charges collected on the HUD Settlement Statement, the original loan closing package is sent back to the lender, and appropriate documents such as the Warranty Deed and Mortgage Deed are recorded. After the documents have been recorded, Title Insurance Policies are issued. The original Warranty Deed and Owners Title Policy will be mailed to you. The original Mortgage Deed and the Mortgage Title Policy will be sent to the lender. This completes "The Closing Process."

What's Expected Of The Buyer On Or Before Closing

Homeowner's Insurance

You will need to obtain a homeowner's insurance policy for the property you are purchasing. Your lender requires this insurance. The agent of your choice needs to call the Title Company with information regarding your new policy as quickly as possible. This information is essential for the title company to prepare the final closing figures.

Cashier's Check

A cashier's check is required for any final closing cost amounts over $100 and should be made payable to yourself. 

Identification

At closing, you will be asked for a copy of your Driver's License, or some other form of valid government issued identification that includes your picture and signature.

Contractual Obligations

The sales contract should contain all agreements between the buyer and seller and must be signed. Any changes must be initialed by both parties. The Title Company will prepare and conduct your closing only according to the terms agreed upon in your contract. If you have any questions about any item in your contract, please discuss this with your real estate agent. If possible, it is always best to get any issues resolved before getting to the closing table.

Miscellaneous

If you or anyone that is a part of your transaction will not be available to attend the closing, you must notify your lender and the Title Company at least 7 business days prior to closing. The absent person will be required to execute a "Specific Power of Attorney" to appoint someone to sign on his or her behalf to permit the closing to continue without that person being present. This procedure will also require the approval of your lender.

If you or anyone that is part of your transaction is in the process of bankruptcy, divorce or any other court proceedings, you must notify your lender and the Title Company as soon as possible. These issues could take time to resolve and need to be handled prior to closing.

What's Expected Of The Seller On Or Before Closing?

Mortgage Payoff Information

You will be required to pay off any and all existing liens on the subject property. You will need to notify the Title Company of the names and phone numbers of all current mortgage holders along with social security number of all borrowers and the loan numbers. It is necessary to supply this information as soon as possible, as it can take up to 5 - 15 business days to obtain the payoff amounts. At times, you may be required to provide written authorization for the payoff. They will contact you if this is necessary.

Condominium Associations (if applicable)

If you are selling a condominium, we will need you to provide the name of the condominium association, contact and phone number.

Transferring Deed

As the seller, you will be required to provide the deed conveying your interest in the property. The title company can prepare the deed, on your behalf.

Cashier's Check

Unfortunately, from time to time, a seller may be required to bring funds to the closing table. In this case, a cashier's check made payable to yourself will be required for the full amount of the final figure.

Identification

At closing, you will be asked for a copy of your Driver's License, or some other form of identification that includes your picture and signature.

Contractual Obligations

The sales contract should contain all agreements between the buyer and seller. It must be signed and any changes initialed by both parties.  The Title Company will prepare and conduct your closing only according to the terms agreed upon in your contract. If you have any questions about any item in your contract, please discuss this with your real estate agent. If possible, it is always best to get any issues resolved before getting to the closing table.

Miscellaneous

If you or anyone that is part of your transaction will not be available to attend the closing, you must notify the Title Company at least 7 days prior to closing. The absent person will be required to execute a "Specific Power of Attorney" to appoint someone to sign on his or her behalf to permit the closing to continue without that person being present.

If you or anyone that is a part of your transaction is in the process of bankruptcy, divorce or any other court proceedings, you must notify the Title Company as soon as possible. If any of the property owners are deceased, a Will and/or a Death Certificate will be required. If there is not a Will, an Affidavit of Heirship will be required to attest that the named sellers are the only heirs of the deceased. If any of the property owners are minors, court approval will need to be obtained. These issues could take time to resolve and need to be handled prior to closing.

If you are the sole owner of the subject property but are married, your spouse will be required to sign the Warranty Deed only to convey any rights they may have in the property. That spouse will also need to provide a copy of their Driver's License, or some other form of valid government issued identification that includes their picture and signature.

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