How to Have a Stress Free Closing Day!

The purchase of a new home is often the largest investment of a person’s life. While excitement builds as Closing Day approaches, it can also bring significant stress due to the complexity of the process and the unfamiliarity many buyers have with it. There are many moving parts and parties to a successful real estate transaction, including the seller, your real estate agent, lender, and the title company.

After the contract is ratified, the buyer should of course continue working closely with their real estate agent to address any outstanding contractual issues and also with their lender (if applicable) to provide them with the great deal of documentation and information needed to get to final mortgage approval. This is stressful enough but can be eased by proactive and consistent communication with both to avoid confusion and delays in the process. Dealing with the title company adds another potential layer of stress which can also be eased if not eliminated with timely communication to best prepare for the big day!

It is the responsibility of a title professional such as Counselors Title to:

1) serve as escrow agent to hold, collect and disburse funds according the parties’ contract, Buyer’s lender requirements and local government obligations;

2) examine the title to the property being purchased and correct or eliminate any defects or clouds on the title so seller may convey marketable and insurable title to the buyer;

3) coordinate with the buyer’s lender to ensure that all financing conditions are met and that all required costs for the purchase are reflected in their Closing Disclosure;

4) conduct the closing while assuring that all conditions of the contract and buyer’s lender have been satisfied;

5) record all required documents in the Land Records with proper payment of recording fees and transfer and recordation taxes; and 6) issue title insurance policies to the buyer and their lender at the conclusion of the transaction.

To help the title company meet these requirements before closing, a buyer should:

1. Provide the Earnest Money Deposit as agreed in the contract, typically to the title company by electronic or paper check or a bank wire. The title company provides these instructions securely to avoid fraud;

2. Provide the title company with the lender's contact information so they can exchange details and figures;

3. Timely complete and return a checklist provided by the title company with needed non public information about the buyer, typically through a secure communications portal in which the buyer registers;

4. Timely respond to any additional requests for information or requests to schedule the settlement date; and

5. Reach out with any questions or concerns about the process at any time.

Following these steps allows the process to move smoothly toward closing day. However, some stress may resurface as you approach the final stages. If the buyer has been working with a lender and obtained final loan approval, the lender will provide a final Closing Disclosure three (3) days prior to the scheduled settlement day.

Upon receipt of the Closing Disclosure, buyer should:

1. Carefully review the Closing Disclosure and reach out to the lender and/or the title professional with any questions or concerns about it as soon as possible;

2. Make the necessary arrangements to be able to provide certified funds or a wire to the title company by the date of closing in the amount shown by the Closing Disclosure;

3. Make sure you have a valid, government-issued photo ID to bring to settlement; and

4. Budget for and be prepared to pay any potential unexpected last minute expenses by having a means to pay for any adjustments, usually a personal check will usually suffice for this purpose.

Most buyers will conduct a final walkthrough of the property on or before the scheduled date of closing. In the unlikely event that the property is not in the condition as agreed upon, the parties to the contract will discuss and work to remedy these issues, which are typically minor in nature. Sometimes some adjustments to the final figures are necessary in this event.

At closing, you will meet at the title company and of course need to bring the certified funds (unless already wired) and your ID with you. The settlement officer will go through all of the conveyance documents as well as the numerous documents required by your lender. This process usually takes about 45 minutes to an hour to complete, after which you will be provided with copies of all of the documentation.

By understanding the process and staying proactive, your settlement day can be the memorable, smooth experience for which you've been hoping!