Buying a new home is an exciting time in your life. But like many other homebuyers, you likely have questions about the closing process. To give you a better understanding of what to expect, we’ve listed a few of those most common:

How long does the closing process take?

The entire real estate closing process, from contract to close, takes about 30 to 45 days. Factors that may affect the length of this time period include the type of mortgage for which you’re applying, whether any title defects on the property exist, and any repairs that need to be made to the home before you take ownership, among others.

What is the CD Form?

The Closing Disclosure (CD) Form is the document describing the financial details of your real estate transaction, such as loan payment amounts, loan rate, and closing costs. This document replaces the HUD-1 settlement form (used prior to October 3, 2015) and is submitted to you by your lender at least three days prior to closing. It’s important to carefully review this document upon receipt and contact your lender with any questions as soon as possible.

Do I have to purchase title insurance?

Lenders typically require homebuyers to purchase Lender’s Title Insurance, which protects their interest in the event you default on your loan or the mortgage becomes unenforceable. Owner’s Title Insurance is optional, but highly recommended. An Owner’s policy protects your financial interest and investment if title defects are detected after you close on the home.

Do seller concessions cover title fees?

If the seller contributes concessions to closing costs on your behalf (as the homebuyer), then certain title fees may be covered. These may include the Lender’s Title Insurance premium and title search fees, among others.

What should I bring to closing?

On the big day, you’ll need to bring a government-issued ID (driver’s license or passport) to your closing. In some cases, the lender may require two forms of identification or additional paperwork. You’ll also need to present a certified or cashier’s check in the exact amount of your closing costs or provide detailed wire transfer information.

Do you have other questions about your upcoming closing? Contact our knowledgeable team at Linear Title & Escrow today!

Selling a home carries the same excitement as buying a new house, for many people. Though most sellers have less to do at closing when compared with buyers, it’s still important to ensure everything is in order to facilitate a smooth settlement process.

Pre-Closing Preparation

In the days and weeks leading up to your closing as a home seller, there are myriad tasks that must be completed. Here’s a checklist highlighting some of main responsibilities pertaining to a seller’s closing, to help make certain you’re ready for the big day:

• Prepare for home inspection.

• Inform your lender of your intent to sell.

• Request loan payoff amount from lender.

• Complete any necessary repairs (or negotiate these items with the buyer).

• Schedule cancellation date(s) with utility companies.

• Review the Closing Disclosure (CD) Form for accuracy.

What to Expect on Closing Day

Buyers and sellers usually have separate closings, and different responsibilities in terms of settlement costs. As the seller, your closing costs typically will include:

• Remaining mortgage balance

• Property taxes and HOA fees owed

• Agent’s commission on the sale

• Title fees and transfer taxes

• Seller concessions/other contract agreements

Make sure to bring the following items to your closing:

• Government-issued ID

• Keys, remotes and list of entry codes

• Certified check or wire instructions for payoff amount

• Wire transfer instructions for proceeds of sale

If you have any questions along the way, be sure to reach out to your real estate agent, lender and/or title company as soon as possible. The more prepared you are for your closing, the more efficient and streamlined the overall settlement process.

Need more information on what to expect at a seller’s closing? Reach out to the Linear Title & Escrow team today!