A real estate closing is comprised of much more than one would expect. There are a lot of things going on at once. There is a bulk of papers flying this way and that, an endless amount of signatures needed, various parties involved, and a whirlwind of emotions all confined to one long, wooden conference room table. To make the process a little bit easier and a lot more enjoyable, we asked our Settlement Officers to compile a Closing Checklist for Agents and Lenders to review before closing.
This one may seem like a no-brainer, but with the high volume of emails that agents and lenders receive daily it is easy to miss or mix up the closing time and location. Always double check this important piece of information before heading to the closing table.
If the listing agent is holding the EMD, make sure it is brought to settlement.
Often, the buyer will come to closing without the proper amount of money and will delay closing. Always make sure your buyer is informed about the amount that he or she must bring to closing, that the buyer has the proper wire instructions so that they are able to successfully wire funds without issue prior to closing, and that all requirements made by the lender have been fulfilled.
Always make sure the Title Company has received the closing package before coming to settlement. If the Title Company does not have the package prior to closing, the parties involved will likely experience long wait times.
One must be government-issued and include a photo, such as your driver’s license or passport. The other must have your name printed on it, such as a Social Security card, credit/debit card, or insurance card.
Prepare a list of common questions for your buyer to prevent any post-settlement confusion.
How will I pay my property taxes and homeowner’s insurance? Where will I send my monthly payments? If I have Homeowners’ Association dues, how do I pay? Who should I call if I have questions after closing?
If you want to avoid delays during closing, it is crucial to review the settlement statement before closing. There is nothing worse than to be seated at the settlement table and reviewing the settlement statement only to hear that a number is incorrect or missing.
Title companies heavily rely upon information given by third parties. If you notice incorrect information on the settlement statement, it is essential to let the title company know before sitting at the closing table. It is preferable to learn about these changes even a day or two prior to closing.
It’s much easier to fix the commission before everyone signs the documents than after the money has already been disbursed. If there is an error with your commission, let the title company know prior to closing so they can ensure you are paid the proper amount in a timely fashion.