A “closing” is the meeting at the settlement company’s office to close the deal on the sale of a home. A lot of work goes into getting everything lined up properly for a smooth closing, and missing pieces can lead to a hectic, last-minute scramble to get everything done. In order to make sure that your closing is a smooth, stress-free event, here are a few ways you can contribute to the effort.
Buyers this is your new home, one of the biggest transactions you’ll accomplish in your personal life, ever. To make sure your settlement company has everything they need, here is what you should plan on furnishing:
- Buyer’s Information. The deed is a legal document that needs to accurately reflect the new owners’ information. Make sure to furnish your legal name.
- Buyer’s mortgage: The settlement company needs to know who is going to be lending money on the transaction, and good contact information for them as well.
- Survey: A survey is recommended for any property that is not a condominium, but it is elective. If you want a survey, let the settlement company know as soon as possible.
- Contract Terms: Things come up in the course of the home inspection, the financing of the home or other circumstances, and these can change the price, or other critical terms to the contract. If this happens, let the settlement company know so that the right terms are included in the final papers.
- Multiple Buyers: When that deed gets recorded, it needs to accurately state how the buyers are holding the property – is it a joint tenancy or a tenancy in common. If these terms aren’t finalized or certain, you should feel free to contact the settlement company to consult about these questions. Cobalt’s affiliated attorney is available to help clarify these issues. Contact Cobalt with your questions.
- Special Circumstances: Are there contingencies or other special circumstances that might impact the closing? Let your settlement company know.
- Preview Documents: Some buyers want to read the documents carefully before signing. The settlement company can provide the drafts in advance, but they’ll only know to do this if the buyer’s ask for this. A pre-closing conference call is also a great option. Contact Cobalt to learn more.
Sellers finalizing this sale is a big deal. It can impact your purchase of a new home, and it is the management of one of your biggest assets. The money is going to start flowing after the closing, and you want to have it go to the right places. Make sure that the closing protects all of your interests by furnishing key information to the settlement company.
- Seller’s mortgage: Is there a loan on the property? Make sure that the settlement company knows the mortgage holder, the account number and your social security number, which is a critical verification piece of information.
- HOA: Is your property subject to a Home Owner’s Association? Does the HOA charge a fee for transfer of ownership? Are there specific notices required? The settlement company takes care of these things as part of the closing, so providing this information in advance is critical.
- Multiple Sellers: If you are a married couple, how do you file your taxes? The settlement company needs to know. Also, for all instances of multiple owners, the settlement company needs to know how to allocate the sale funds between the parties.
- Forwarding Address: Taxes and other follow-up issues will involve contacting the sellers after they’ve moved on. The settlement company needs to know how to contact you.
- Wiring Instructions: In order to receive the proceeds of the home sale, the seller will either receive a check (which takes a few days to clear) or ask for a wire transfer. Wiring instructions involve some specific banking information that needs to be furnished in person.
Both Parties the closing itself may involve special circumstances that the settlement company needs to know about. For example, sellers who are a divorcing couple may want to arrange to have separate appointments to sign the documents without having to see one another. On the other end of the spectrum, it’s not unusual for a closing to take place at a time and place where one of the parties can’t be there. The settlement company will have specific requirements for a Power of Attorney that will suffice to allow your designated agent to participate in the closing for you.
Your settlement company wants to get the closing done without any hiccups. If you help them, you will be setting yourself up for an easy day. Want to know more about what Cobalt Settlements does to provide the best services in the business? Contact us with all your closing questions.