You'll review and sign your loan documents, such as your mortgage and closing disclosure. Additionally, you'll show that you have a homeowners insurance policy in place for your new home. You'll provide the remaining funds required to close the home purchase, such as a cashier's check or bank wire transfer.
However, the most important documents in real estate are offers, agreements, and contracts between the buyer and seller.
In most transactions, the buyer has the majority of the paperwork at closing. This is typically due to the fact that the buyer will be executing final financing documents.
The Note. "At closing, once there, you'll be signing the note and the mortgage," explains Jen. The note is often called a promissory note (also known as a written promise). It represents your commitment to pay back the money you're borrowing to purchase the home.
Your lender is required to send you a Closing Disclosure that you must receive at least three business days before your closing. It's important that you carefully review the Closing Disclosure to make sure that the terms of your loan are what you are expecting.
Purchase Agreement
This document is essential because it spells out all the details of the property and other important information about the sale. The purchase agreement is a legal document that becomes enforceable once it is signed by both buyer and seller.
In some cases, the buyer may sign first, followed by the seller. In other cases, it may be the seller who signs first. The signing order is typically determined by the closing agent or attorney handling the transaction.
The three-day period is measured by days, not hours. Thus, disclosures must be delivered three days before closing, and not 72 hours prior to closing. Note: If a federal holiday falls in the three-day period, add a day for disclosure delivery.
A seller typically receives their money from the home sale 24 – 48 hours after closing.
Long-Term Documents
Records of paid mortgages (certificate of satisfaction or lien release) Closing disclosure statements (settlement statement or HUD-1 settlement sheet) List of household possessions, including photographs of valuables that are the subject of or would be covered by an insurance policy.
The final closing statement is provided by escrow at closing. The final closing statement provides a picture of all the closing costs, incoming and outgoing funds in the transaction, i.e. it shows all the money in and out of the sale.
The final stage of a real estate transaction is the real estate closing process. This is what completes and finalizes the transaction.
Two Weeks Before Closing:
Contact your insurance company to purchase a homeowner's insurance policy for your new home. Your lender will need an insurance binder from your insurance company 10 days before closing. Check in with your lender to determine if they need any additional information from you.
Deed: The seller will sign the deed to transfer ownership of the property over to you, and the deed will have the names of all the buyers on it. Your title will be held by a third-party trustee until you have paid for the house in full. You will receive a copy of the deed at closing.
Some buyers may be able to negotiate an immediate possession date. This means as soon as the transaction is closed and the deed is recorded, the buyer can move in. A few other common buyer possession dates may be 15 days, 30 days, 60 days, or even 90 days after closing, depending on how much time the seller needs.
Can a mortgage be denied after the closing disclosure is issued? Yes. Many lenders use third-party “loan audit” companies to validate your income, debt and assets again before you sign closing papers. If they discover major changes to your credit, income or cash to close, your loan could be denied.
After your loan has been deemed “clear to close,” your lender will update your credit and check your employment status one more time.
Your loan may be denied after you've been cleared to close if there's a dramatic change in your finances, such as you lost your job, ran up unexpected large debts, or applied for another form of credit.
On average, closing on a house in California can take anywhere from 30 to 45 days, post-acceptance of an offer. This timeframe is fluid, influenced by the factors mentioned earlier. Each step, from financing approval to inspections, plays a crucial role in the overall timeline.
If the seller has elected to receive a physical check, the payee on the check will be each and every the owner of the property listed on the deed. The check will be handed to the seller attending the closing or sellers agent typically at closing.
Closing documents are the legal papers that finalize the transfer of ownership of the property from seller to buyer, including all financial obligations and other details of the transaction. Some of the most important documents you'll sign include the deed, bill of sale, and mortgage or loan documents.
The seller's presence at the closing allows them to sign the necessary documents to transfer ownership of the property to the buyer. However, for most of the real estate transaction sales that we handle at my office, we are able to arrange it so the seller does not have to attend the scheduled closing.
How long should you keep old mortgage documents after selling a home? Keep your mortgage documents and related home sale records for at least seven years after selling your home. This includes proof of mortgage payoff, the closing statement and receipts for capital improvements.