For many homebuyers, especially those buying for the first time, the closing process can be intimidating. They’ve finally found the home they love, the seller agreed to their offer and the last thing they would want is for anything to go wrong! As soon as the seller accepts their offer, their closing can begin and will happen within 30 to 90 days.
Selecting a Closing Agent
Let’s say this is you currently or in the future — what should you expect? Well, the first thing you’re going to want to do is make sure you partner up with an experienced closing agent, like those from the PTA team, to help you ensure all the details of your closing come together nicely. If you are working with a real estate agent, they may place an order with a closing agent with your permission as soon as your sales contract is accepted. The closing agent can be a title and escrow company or a settlement company.
Most homebuyers rely on their real estate agent to select a closing agent—someone they work with regularly and know to be professional, reliable, and efficient. However, you can choose your own closing agent if you’d like. Your closing agent will oversee the closing process and make sure everything happens in the right order and on time, without unnecessary delays or glitches, so make sure you’re choosing someone you trust.
Escrow Agreement and Title Search
After selecting a closing agent, a contract or escrow agreement is drafted, which the closing agent reviews for completeness and accuracy. The agent will also put your deposit into an escrow account, where the funds will remain until closing. Then a title search will be conducted on the property you want to buy. Your title company searches the public records, which will identify any issues with the title such as liens against the property, utility easements, and so on. If a problem is discovered, most often the title professional will take care of it without you even knowing about it. After the title search is complete, the title company can provide a title insurance policy.
There are two kinds of title insurance coverage: a Lender’s policy, which covers the lender for the mortgage loan, and an Owner’s policy, which covers the homebuyer for the purchase price. If you are obtaining a loan, the bank or lender will typically require that you purchase a Lender’s policy. However, this policy only protects the lender, so it’s always recommended that you obtain an Owner’s policy to protect your investment. The party that pays for the Owner’s policy varies from state to state, so ask your agent for guidance before closing.
Obtaining a Closing Disclosure
Your lender must provide a Closing Disclosure to you at least three days prior to closing. If you or your lender make certain significant changes between the time the Closing Disclosure form is given to you and the closing, you must be provided with a new form and an additional three-business-day waiting period after receipt of the new form. If the changes are less significant, they can be shown on a revised Closing Disclosure form provided to you at or before closing, without delaying anything.
The Finish Line: Closing
As closing day approaches, your closing agent will order any updated information that may be required. Once they confirm with the lender and the seller, your closing agent sets a final date, time, and location of the closing.
On closing day, all the behind-the-scenes work is complete. While you’ve been busy packing, ordering utilities and coordinating the movers, your closing agent has been managing the closing process so that you can rest assured, knowing all the paperwork is in order.
All that’s left to do is celebrate closing on your new home — congrats! Get in touch with PTA today for your care-free closing by giving us a call at (602) 491-9660. We know you’ll see the Premier difference!