Are you buying or selling a home in the Tampa Bay area and are curious about what happens on closing day?
Typically the actual closing itself takes place at a title agency selected by the seller. The buyer may select the title company of his choice if he prefers and it is entered into the contract.
Occasionally you will have a remote closing where a notary will bring the paperwork to the buyer or seller. You can also have a “mail-away” closing where the documents are sent via overnight mail to be signed with a notary if one of the parties does not live locally.
Three days before closing the lender and title company will tell the buyer exactly how much money they need to cover their down payment, closing costs and expenses. The title company will require the money be wired to them in advance, often the day before or the morning of closing. This information will only come from the title company and it is extremely important to verify by phone or in person the wiring instructions with the title agency.
Sellers will also notify the title company in advance where to send the proceeds of the sale. It is extremely important to speak to the title company directly to avoid being the victim of wire fraud.
Day of Closing
Buyers should conduct a “final walk through” of the property they are purchasing either the morning of or the day before closing. Be sure to verify any requested seller repairs have been completed, all of the sellers things have been removed and the home is in the same condition it was when you went under contract.
Buyers, be prepared to sign a lot of paperwork today! If you are getting a mortgage you will usually sign those documents first. Then the title agent will send copies of these to your lender so the lender will release the funds to the title company. You will also sign another set of paperwork to take ownership of the home.
Once the funding from the bank has been completed and all of the paperwork signed you are handed the keys and are officially a homeowner! Congratulations!!
Sellers may sign their paperwork the day before or later in the day after the buyers have signed all of their papers. I have even attended closings where the buyers and sellers are in the same room and sign all of the documents together, although that is not common.
After the buyers and sellers have signed all of the documents and the lender has wired the money to the title agency the proceeds will be wired to the seller. This is often the next business day.
As a buyer or seller there are two things you must be sure to do
- Bring your photo ID to your appointment. The title agent will need to verify your identity
- Confirm any wiring instructions with the title agency in person or by phone before sending any funds. Wiring information should only come from the title company
Your closing may be slightly different from the typical closing that is outlined here. Your real estate agent and title agent should keep you informed of what the next steps are during your transaction.
This video may be more fun to watch
Kelly Harden, Realtor®
Mihara & Associates, Inc