LIberty Title Agency | Smooth Closing

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Tips for a Smooth Closing
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The Closing Process

Your closing should be a stress-free event. This section of our site will offer information both to the Seller and to the Buyer as to what they can expect at the closing, as well as items that are applicable to all parties. Having closed over lots of transactions in over the years, Liberty Title Agency has seen it all -- we know how to give you a smooth closing.

Tips for Sellers

1. Bring Picture Identification

Everyone who signs documents (buyers, sellers or people acting on their behalf) must have identification. A drivers license or a passport are the most acceptable. Believe it or not, "impersonation" claims cost our industry more than $1,000,000 per year. You really do need I.D.!

2. Verify the time and location of the closing

If you are closing at Liberty Title Agency, we will provide you with the time and our office location. However, some closings occur at the Buyer's lender, a real estate sales office, or an attorney's office. Take a few minutes to check.

3. Consult your attorney

If you have been working with an attorney, please let us know. You and your attorney will need time to review documents and closing figures, especially if your attorney does not intend to come to the closing. Do not assume we know an attorney is involved. We will only contact an attorney and provide him/her with documents after we have received your instructions. We respect your privacy.

4. Bring your spouse

If you are selling property and are married, your spouse may have certain rights and may ned to sign certain documents. If your spouse is not planning on attending the closing, please let us know.

5. Consult your Realtor regarding outstanding contingencies and final walk-through

Closings have been delayed or cancelled by failure to remove contingencies, or by failure to clear items that were outstanding from the contractor's inspection or final walk-through. The sellers should plan to vacate the home the day before the closing. This will allow time to prepare the home for the "walk-through" that occurs prior to closing.

6. Hire a babysitter

A sale/purchase closing generally takes an hour. Liberty Title Agency tries to accommodate children at the closing with toys on hand; however, the closing of your home is an important transaction. Having watched many tired and distracted parents trying to understand and sign important legal documents, we recommend using a babysitter. If you do not yet have a home at which to leave your children and their babysitter, feel free to contact our closing staff.

7. "Good Funds"

Unless prior arrangements are made, the Seller will receive a title company check drawn on our escrow account. These checks are honored by other title companies and lenders if you are immediately departing for a closing on your new home. If you require a certified check or "wired" funds at closing, please notify us at least 48 hours prior to closing. There will be an additional fee for cashier checks or wiring of proceeds, as we are charged by our bank for these services.

8. Mortgage Payments

You should discuss the advisability of making your final mortgage payment with your lender, real estate agent and the title company as your closing approaches. If you make a payment immediately before the closing, we will probably not receive a payoff letter from your lender that reflects the payment. We must collect the amount specified in your payoff letter, (ordering a new payoff letter will often result in a $15-$50 charge from your lender). Please note, if you don't make your payment and the closing is on the 12th-15th day of the month, you may be charged a "late fee" by your lender.

9. Mortgage Payoffs

We will use an overnight delivery service or local carrier to make your mortgage payoff, which will usually occur on the business day after closing.

NOTE: If you have a VA\FHA mortgage, check with your lender before scheduling a closing. These loans accrue interest monthly, so if a payoff is not made on the first of the month you will owe interest for the whole month!

10. Taxes

If your property taxes (November 30) are due at or near the time of closing, you will need to bring the tax bill or paid receipt to closing. The tax collector may not be able to promptly post payments, so it is often impossible to verify the status of property taxes near their due dates. If we can not confirm your payment of taxes, we will have to withhold the amount of the taxes from your proceeds until we can verify payment.

Tips for Buyers

1. Bring Picture Identification

2. Bring a certified check or cashiers check

No personal or money market funds. As a buyer you will probably need to bring funds to the closing. Have the check made out to Liberty Title Agency. This will help protect you in case it is lost or stolen. If your closing figures are not finalized and you have to go to your bank, you can estimate the amount you will need. Our staff will be happy to assist you with an estimate. Any difference will be returned at the closing.

NOTE: Checks from a stockbroker or fund manager are not acceptable at closings. If you are using such funds, deposit them into a bank account a week before your closing so you can obtain the proper funds in time.

3. Bring a copy of your homeowners insurance and a one year paid receipt

Almost every buyer needs to furnish proof of insurance and a paid receipt at the closing. Check with your lender and insurance agent regarding the specifics of the policy. In most cases, the policy must cover the amount of the mortgage and also contain a mortgagee's loss payable clause. If you are purchasing a condominium, verify that the homeowner's association has arranged to provide proof of insurance (this is also a good time to check on any homeowner association fees that you will need to pay at the closing).

4. Verify the time and location of the closing

5. Consult your attorney

6. Review Lender Requirements

Lender requirements are usually well detailed on your "Mortgage Acceptance/Confirmation" letter. If you see a requirement that you have not discussed with your loan officer, DO NOT assume that it is no longer required. Your lender will typically require that you bring paystubs, verification of funds, documents from the sale of your previous home, gift letters, and additional tax forms. The closing is not the time to negotiate with your lender on these items.

7. Bring your spouse

If you are selling property and are married, your spouse may have certain rights and may ned to sign certain documents. If your spouse is not planning on attending the closing, please let us know.

8. Consult your Realtor regarding outstanding contingencies and final walk-through

9. Schedule moving services properly

Buyers should not expect to meet their moving van until 12-24 hours after the closing. In almost all sales agreements, posession remains with the seller until after the closing is over. A night spent in a motel or in sleeping bags may be well worth the anxiety of timing the arrival or departure of the moving van with the closing. You may want to use the time to line shelves, touch-up paint or celebrate!

10. Hire a babysitter