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!