The closing process, or settlement, transfers ownership of a home from the seller to the buyer.

 

A lot happens behind the scenes during this process and your agent (buyer's agent if you are the buyer or the listing agent if you are the seller) coordinates everything for you, and a lot of money is going to change hands. But when you know what to expect and plan well, it can be a smooth, relatively low-stress experience.

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The whole process boils down to 11 doable steps. Closing on a home is a big deal, yet it might actually be easier than finding one that you want and can afford in the first place. And when it’s over, you leave with the keys! And a mortgage. Let’s take a look at what takes place:

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STEP 1 – Your Title Company receives the executed contract and earnest money.

 

STEP 2 – The contract is receipted by the title company and Earnest Money is deposited.

 

STEP 3 – Title is opened. The file is assigned a GF number, we begin the title search, and we order the tax certificate.

 

STEP 4 – The legal history of the property is checked. The title search includes a list of owners of record, liens, encumbrances, lawsuits, divorces and any other factors that could put a cloud on the title or effect the transfer of title.

 

STEP 5 – Once all of the title documents are compiled, the examiner reviews them and issues a title report.

 

STEP 6 – After the report is created, the Title Commitment is issued. At that time the title company works on all of the items listed in Schedule C of your Title Commitment. Those are the items that must be cleared from the title in order for the underwriter to issue a title policy. The Buyer and Seller receive a copy of The Commitment along with the lender. In this packet the tac certificate is delivered along with the wiring instructions.

 

STEP 7 -The Seller’s loan payoff information is requested and the survey and HOA documents are ordered, if necessary.

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HOA resale certificate – If there is a homeowners association, the resale certificate and rules and restriction documents are ordered and delivered to all parties.

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Survey – An existing survey is supplied by the seller and approved by the title company or a new survey is done.

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STEP 8 – A closing time is scheduled with all of the properties.

 

STEP 9 – All lender-requested closing documents are delivered to the title company and they prepare everything to facilitate a smooth closing day.

 

STEP 10 – On closing day, the Buyers and Sellers sign the closing documents. Once the lender reviews all of the signed documents and approves them, funds are disbursed through the title company.

 

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Get keys and possession – after funds are processed, buyer gets keys to property.

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STEP 11 – After closing the Owner’s and Lender’s title policies are issued and delivered in the mail. Legal documents are recorded at the County Clerk’s Office.

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And that’s all it takes! Of course, the preparation and timing of all of this can vary depending on title company, lenders, buyers, and sellers.  

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