What Happens at Closing?
Closing can be that mysterious word that means the end of the transaction and the beginning of someone else’s new life. Either the sellers moving on with the profits from the sale of their home, getting out under the risk of a foreclosure or short sale, or the buyers are enjoying the peace and tranquility that come with the benefits of home ownership.
It certainly means different things to different people but what exactly happens at closing?
When the transaction is closed it’s much like a court case; the deal is done, all of the evidence and process to get to this point is completed, finances are in order, and all parties have done their job to make sure the transaction has come to this point. It’s the final stage in purchasing or selling a home.
After the home inspection, there is a quiet time for the buyers and sellers but not for the other parties involved. Agents, lenders, mortgage brokers, escrow agents, and title insurance officers are all struggling and working hard to make sure the final documents and information is gathered and ready to go for the final closing and signing.
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Buyers and sellers may start to worry during this time because it’s so quiet for them but a really good agent will keep each party informed as to what’s going on and not to worry. Since this is the least amount of work the sellers and buyers will need to do at this point in the game, the best thing for them to do is to pack and get their current house in order whether they are selling the home or buying a home. Sellers will need to pack up and complete any necessary repairs or requests given in the inspection contingency. Buyers also need to pack and close up their existing home or rental, conduct a change of address, and stay in close contact with their buyer’s agent to make sure that everything they need to do is completed on time.
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This is a great time to ask your Realtor or your title agent any details or clarification of the documents you are signing. Don’t sign anything unless you fully understand it and most of the time, your title agent will be happy to explain any detail and document to you.
This procedure can take anywhere from one to three hours or more depending on how many documents are involved and how much clarification or explanation each document needs. Once completed, each party will finalize the documents with the County or the city and record the deed, disburse the funds among those that need it, and hand over the keys to the new buyer.
Each transaction is slightly different although this is the general practice. Ask your real estate agent if you have more questions about closing and make sure to contact me anytime if you’re interested in buying or selling a home in West Bloomfield Michigan.