What happens at closing? It is confusing and makes everyone anxious. Once the escrow gets loan documents, several things have to happen.
a. The escrow company completes a HUD statement of all the charges for both buyer and seller which is then sent to the lender to be approved. This includes seller payoffs. It also comes to the selling and buying agents for approval. Once the lender signs off on it, then they call the seller and buyer to arrange signings.
b. As a buyer or seller you will go in to sign the selling documents at escrow. If you can’t go to escrow, they can arrange a signing for you at an additional charge usually. Let your agent know your availability so we can plan around your schedule.
c. Once you have signed your documents…usually 1 – 2 days prior to closing, the documents get sent back to the lender for a final look see. They may call the buyers employer to verify your employment or even pull your credit again. That is why we say…don’t go buy a car or charge up your credit cards with furniture etc. until it is closed. It changes your FICA score and can totally mess up your loan.
d. Once the bank has approved it, they will fund in the morning or by 1:30 on closing day. At that point the escrow company releases it to close and it is taken to be recorded. The only time you can sign and close on the same day is if you are paying cash.
e. Once we have recording numbers, the buyer gets keys and all is wonderful. Congratulations! You are a new home owner. Always feel free to call me with your questions!