Asked and Answered: 5 Common Closing Questions

Sitting at the closing table is an exciting time in your life, whether you’re a first time homebuyer or home buying pro. But regardless of the number of home closings you have under your belt, you likely still have questions about the process.

pexels-photo-208494

Here are five commonly asked questions about closing on a home.

  1. How much do I need to bring to the closing table? The amount needed to close on a home varies depending on a number of considerations. The type of loan, interest rate, points paid, down payment, HOA expenses, lender fees and other items all factor into total settlement costs. Generally, we can provide the final closing amount to you or your representative the day before closing.

 

  1. How soon can I close? From contract to close, real estate settlements take about 45 days, on average. The best way to help ensure you close as soon as possible is to be well-prepared with information sharing and submission of documents to your loan office. Once our title team has all of the information in hand, we work diligently to streamline the process and get you to the closing table in a timely manner. In some cases, certain obstacles like title defects may slow the process. We work as quickly as possible to resolve any title concerns uncovered during the title search.

 

  1. Can I get an estimate of my closing fees? At times, we can generate a preliminary Closing Disclosure (CD) Form, which is a list of estimated closing costs based on sales price and loan amount. However, it’s important to remember that a preliminary CD is solely an estimate based on rudimentary information. Several factors go into determining total closing costs. The final figures will be remitted via a CD form distributed by your lender three business days prior to closing.

 

  1. What is a title search? A title search is an investigation into the ownership history of a property, to ensure that proper and legal transfer has occurred from one owner to the next. Title defect, or clouds on title, are factors surrounding title that could allow other parties to lay claim to a property. Such defects include liens, judgments, mortgages, undisclosed heirs, forgeries or boundary disputes, among others.

 

  1. Do I need title insurance? There are two types of title insurance: Lender’s Policies and Owner’s Policies. Nearly every lender requires Lender’s title insurance, which protects their interest in the property should another party attempt to lay ownership claim to the home. An Owner’s Policy isn’t required but is HIGHLY recommended. This type of coverage protects your interest, as the homebuyer, should someone try to claim ownership of your property after purchase. Visit our Title Insurance page for additional information.

Have other questions? We have answers! Talk to our experienced Linear Title & Escrow team today!

Behind the Scenes on Closing Day

board-cinema-cinematography-274937

Closing on a home brings joy, excitement and feelings of accomplishment (and often relief) to all those involved in the real estate settlement process. But depending on which end of the table you sit, closing day represents a culmination of a vast array of steps and procedures that go into making that very closing possible. It may appear as though the file of closing documents you are required to sign and initial seems the result of a straightforward, simple process. However, much preparation, research and communication goes into getting a home loan cleared to close.

Initializing the Closing Process

Though the mortgage process starts with the loan application, the initialization of closing procedures begins when the real estate agent or lender sends a ratified contract and a request for title to the title agency conducting the settlement. Generally, this takes place two to four weeks prior to the scheduled closing date.

What Happens In-Between

Once the contract is received, the title agent initiates a title search on the property. A title search is conducted to ensure ownership of the property can be transferred properly from the current owner to the homebuyer, and typically takes about three to five business days to complete. Any title defects must be resolved prior to closing. The title company then completes the title binder (collection of documents pertaining to closing on the property and mortgage details) and sends this documentation to both the mortgage lender and seller’s representative. The title agent then determines the pay off amount on behalf of the seller and issues clear title.

The Final Hours

On the big day, final closing documents are sent from the lender to the title company. The documents are scanned, organized and compiled for the represented party to review and sign at the closing hour.

 

Want to learn more about the closing process at Linear Title & Escrow? Contact our experienced team today!