For many buyers and sellers, closing day is a bit of a mystery.
If you’re like most people, you’ll only buy and sell a handful of properties in your lifetime. Whether this is your first home or your third, the process can be a bit different every time, especially since closing practices can vary from state to state.
Most buyers and sellers know that paperwork gets signed, money exchanges hands, and the seller hands over the keys to the house. Oftentimes, buyers and sellers don’t quite understand how and when everything happens.
Here’s a general run down of what happens prior to closing.
Before closing, you’ll receive a copy of your closing disclosure or settlement statement about 3 days prior to closing. If you’re getting a loan, you’ll receive your closing disclosure to acknowledge at least 3 business days prior to closing from your mortgage company.
With your Realtor, you’ll also take care of doing your final walkthrough. During your final walkthrough, you’ll walk through the home one more time to ensure that the home is in same or better condition than when you last saw it. You’ll also make sure that any necessary repairs have been made.
Closing itself is fairly simple.
The buyer and seller will both sign off on closing documents. Generally, when both parties are there and there is a loan involved, the process will take about an hour to complete.
Sometimes, there are funding documents involved where the lender wants to review some of the documents to ensure they are signed correctly. When that is the case, those documents are signed first and sent on to the lender to review. The remaining documents are signed in the time that the lender is reviewing those documents.
Once all documents are signed and funds are received. Closing is complete.
[Note: Typically, this is how closing day happens. There are certain times where a buyer or seller doesn’t attend closing or funds aren’t received in time for closing, or other situations cause closing to be a bit out of the norm.]
Generally speaking, you will get your keys once closing is complete. Be sure to check with your realtor as well to confirm. Occasionally, when a seller is out of town, keys may be left in the house or a realtor may be bringing you the keys.
You will receive your check as soon as closing is complete. The closing will be complete as soon as all documents are signed and the proper funds are received from the buyer and the buyer’s lender.
Most of the time, that’s as soon as all closing documents are signed. Occasionally, when there are delays with the wire, that may not be right when closing documents are signed. When that is the case, your check will be ready as soon as the wire is received.
Closings generally take an hour or less to complete. There is the occasional time where things take a bit longer, but that’s generally a good rule of thumb to ensure you allow enough time for closing.
Still, there are certain times where closing does take longer. If there are issues with the final walkthrough or funding conditions from the buyer’s lender, there are times where closing can take longer. At Title Group, we do our very best to make sure closings are efficient and smooth.
It’s important that you come to closing prepared. You’ll want to bring identification, any closing funds, and any additional items your realtor or lender may have asked you to bring to closing.
Generally, only one form of identification is needed at closing, but there are some mortgage lenders that require two forms of identification be presented at closing. So, as a buyer, it’s best to be prepared and have two forms of identification on you at closing.
If you’re bringing funds to closing, it’s important that you bring closing funds in the proper form. Here is our policy for closing funds:
Title Group of Tennessee is a full-service Knoxville title company. We specialize in Knox, Sevier, Loudon, Blount, Jefferson, and surrounding counties. Title Group of Tennessee is ALTA Best Practices Certified since September 30, 2015.
Are you in the process of buying or selling a home in the Knoxville area? Title Group would love to assist you in any way possible. You can reach us at 865-392-5801 or via email at [email protected].