Foote Title Group – Answers to the five most common home closing questions
How do I know how much to bring to closing? Well that is an interesting question, and one of the things that we do, one of our jobs is to pull all of the numbers together from all the different facets that go into this. So you have all these different moving parts when you’re buying or selling a home and so we pull all of those numbers together. And sometimes it goes down to the last minute sometimes it’s a couple of days before. So sometimes it’s a little hard to judge exactly when I’ll have an exact number on those things because there’s so many pieces that go into it. So your lender gives us figures on all the things that you agree to in your loan. So the charges and the things that you’re responsible for there. So then we go through real estate contract and we look at that and try to make sure we pull together all of the numbers and information there that you agreed to when you originally wrote your contract and decided to purchase that property. So then we also add in all of the costs for any inspections or any things that need to be paid for. If you have a house location survey done, or even a boundary line survey. All of the costs that you need to be able to purchase that home we put all of that together. So your settlement costs, the cost of the county charges you to record the documents, any property taxes that may be due. And on the seller side we have a lot of things that we’re going to pull together too. Any loans that they need to be paid off, anyone that they owe to sell that property. And then the things that need to be taken care of in order for them to sell that property. There’s some costs involved with some of those things as well so sometimes getting those numbers together takes a little bit of time and there’s so many different facets and people that contribute to what those numbers look like that sometimes we don’t have those until the very last minute. So if you’re purchasing what we always recommend is your lender always has a really good number what that’s going to look like and usually it’s pretty close. Unfortunately because of a lot of fraud issues now we don’t take personal checks at closing unless they’re under five hundred dollars. So what we always recommend is that you get a really good estimate from your loan person and they are professionals they know who to get the information from how to get that number pretty close for you. And go ahead and get your wired funds that you’re gonna be sending for closing for the number that they give you. That way you’re not stressed out to the last minute trying to figure out what that looks like. And then anything that needs to be settled up at closing you can write a personal check for that and we can get that settled. So that’s how about that we come up with the numbers for closing and that was one of the first most common questions that I get. Number two is what do I have to bring to closing? Well of course you have to bring you, and you have to bring anybody that is on the loan that’s gonna be on the loan because they’re going to sign some documents. If you’re in the seller side anybody that has an ownership interest in that property needs to be a closing to sign some documents unless you’ve made other arrangements with us to be able to do that. So any people that are going to be involved in the transaction need to be there. So and if you for some reason somebody can’t be there we need to make some arrangements to get that worked out. Government issued picture ID. So I say government issue because in the 30 years I’ve been doing this the funny thing has I have people bring all kinds of ID’s. I had somebody bring their BJs cart one time. I know crazy. Well it happens because people don’t understand no one knew no one told them exactly what that needs to be. So a driver’s license a government-issued picture ID. If you don’t drive more than likely you have an identification card that you have from the Motor Vehicles so a government-issued picture ID has to be presented in order for us to verify that the people that are signing the documents are the right people. Any funds that you need for closing on the sellers side sometimes that happens too. So you may need to bring those funds with you. The other thing is if the lender required on the purchasing side of the ledger required any last-minute documents. Sometimes they require us to collect some things from you and they’ll tell you in advance you need to bring those to closing. So make sure you bring those. If you’re using a power of attorney for someone which we can talk about it another broadcast, I can answer questions about later. But we need that original power of attorney because we have to record that original power of attorney in the land records with the documents that you’re signing otherwise those documents aren’t valid. So we need that original, we collect that from you and they get it back to you once it’s recorded.
So those are some of the things you would need it closing. And so next what happens at closing? That is where you actually sit down and we go through all of those documents that you need to sign to finalize everything so you can get those keys or give those keys and get your check if you’re on the seller side. So you’re gonna actually come into our office or we actually traveled to closings to everywhere for people for closings in the and the two states that we do closings for. So we would actually travel to you or you come to our office at the designated time that everybody agreed to and we would have a pocket full of documents that need to be taken care of. And then we will go through those and we explain those to you. So different people have different levels of what they want to know about that so sometimes we have people who have done this a lot of times and they know what most of the documents are because a lot of them are kind of generic and you see over and over again. But some of them are very specific to the new loan of the property that you’re buying either way we go through all of those things with you both on the sales side and the purchase side and explain those documents to you as much information as you want as you need based on what those documents are. So we’ll go through all of that. Closing usually takes about an hour sometimes a little bit more, sometimes a little bit less. We try to get you as much information as we can before you get there because you’re sitting at the table with a bunch of other people and you’re talking about all these other things you’re excited about moving whether you’re on the buyer or the sales side. You’re excited about the situation you want to talk about the house you want to talk about a lot of other things that are going on so we try to provide you some documents before closing to get you as much information as possible so you’re not sitting there in that fish bowl of confusion and trying to absorb all the information. Of course we’re always available after closing if you have any questions on about that afterwards. But usually closing takes about an hour and we go through all of those documents with you and once it’s all done then we depending on the state, different states have different rules about how the funds are dispersed. So that would depend on on which area we’re doing it in.
And the last question that I get most commonly is who should be there. And we’ve talked a little bit about that. Let’s say you’re purchasing a property and your first time home buyer and your parents are signing with you because that happens a lot your parents need to be there because they’re going to be signing some documents even though they are not going to be living in the house. Or maybe they’re not an ownership interest in your mind they still are going to be signing some documents securing that loan. So you definitely need to have them there if you are on the sales side. Maybe one of the people that was originally an owner passed away then we need to identify and address that issue before you actually come to closing. But anybody who has an ownership interest in that property has to either be at that closing or we have to make some arrangements to get them to sign this document because that all of those people need to be signing off on them.