20 Oct 5 Things you should know to prepare for your Closing…
Lights, Camera, Closing! The closing for your home is the event we have all been working towards. Here are 5 Things you should know to prepare for your Closing.
Many homeowners are nervous about the process and unsure of what to expect. In Minnesota, we are a table funding state, meaning all parties get together and closing takes place at the Buyer’s Title company. This differs from other states where properties go ‘into escrow’ for about 30 days and buyers and sellers close with their title companies separately during the escrow time.
Closings are usually a smooth, friendly process and finish in about an hour. Here’s a few tips to prepare for your Closing:
1. What exactly is a Closing? Closing is the culmination of your Real Estate transaction. Sellers and Buyers attend and ownership of the property is transferred. Realtors, Mortgage Officer and Closers are also there and the buyers will bring their down payment, the mortgage company will wire the funds for the mortgage, all parties will sign a deed and in little more than an hour’s time, the Buyers will be the official owners. Sellers will receive their funds at closing via a check or wire transfer.
2. Where will closing take place? The closing will take place at the Title Company selected by the Buyers. In Minnesota closings take place during business hours because the money coming from the mortgage company is wired to the title company that day.
3. What if I can’t attend the closing? There is a process called Pre-signing, this allows a buyer or seller to sign the majority of documents ahead of time and appoint a Power of Attorney to attend the actual closing. Sometimes the Power of Attorney is your spouse, relative, friend or even your Realtor.
4. What is a HUD statement and what role does it play? The HUD is the complete settlement statement used at closing to show all of the credits and debits to both Buyers and Sellers. The HUD will include all money being exchanged, the down payment, earnest money, title fees, mortgage costs, real estate compensation, payments to the State and County for taxes and fees. The HUD statement is usually ready a few days prior to closing for your review.
5. What do I need to Bring to Closing? You will need a photo ID, the title company will make a photo copy of your ID. You will need to know your Social Security number; you do not need to have your card. If you are a Buyer you will need a Cashier’s Check for your down payment. The Cashier’s Check should be made out to yourself, you will sign it over to the title company at closing. You will be asked for your last 10 years of addresses. Sellers should bring their extra house keys, garage door openers and codes to closing for the new Buyers.
You can ask your Realtor, Mortgage Officer or Title Closer for other specific information. Also, we are always happy to help you, just send us an email with your questions, you can use the Ask a Question page to contact us.
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