It's Closing Day!
If all the work has been done from contract to closing day, closing day should be a happy and exciting day! In Michigan, closing day usually means that the buyer get the keys to their new home, the seller gets their proceeds' check from their sale, and the brokers get paid their commission!
Who has to be at Closing?
Everyone involved in the transaction should be attending the closing. There are many documents at the closing that need to be signed and reviewed including mortgage documents, title documents and real estate documents. Any seller who is on the deed, the mortgage, or representing the seller, needs to sign documents at closing. The buyer who is going to be on the new deed and/or the mortgage needs to be at the closing to sign all of the buyer documents as well. There is an escrow agent, who is a representative of the title company, that facilitates the closing. The seller and buyer should have received the closing documents ahead of closing to review. Feel free to ask any questions that you may have as to what you are signing. Real Estate Agents and Mortgage Lenders do not have to attend the closing, but it is a great benefit in case questions come up in regards to the purchase/sale or the mortgage. The closing agent is not privy to the negotiations of the transaction. They only know the documents that are in the closing package.
What do I have to bring to Closing?
A Seller will have to bring a valid proof of identification. They may also want to bring extra copies of the house keys, garage door openers, alarm codes, and general information about the home that the new buyer may need to know. There also may be requirements for a certified death certificate or trust, probate, divorce information. A Buyer will have to bring a valid form of identification, their portion of their proceeds in a cashier's/certified check or proof of wire transfer, and possibly proof of homeowner's insurance and proof of utility transfers. Usually the title company will notify all parties of a "need's list" of items that are required to complete the closing. Everyone is notified well ahead of closing.
Where does the Closing happen?
The closing is usually dictated by the seller and it occurs usually at the seller's title company's office or seller's real estate agent's office. At times, closing can occur in a mutually agreed upon place where it's convenient for all parties.
How long does a Closing take place?
A mortgage closing usually takes about an hour if there are no issues. All parties need to sign all the required documents, and the closing agent usually summarizes each page so that everyone has a general understanding of what they are signing. At anytime, feel free to ask questions or take the time to read the documents again if you don't understand. A cash closing usually takes about a half hour or less because there are less documents to sign. With a mortgage, the closing agent usually has to wait for a "funding approval" from the buyer's lender. When everything is complete, the seller will get a proceeds' check, the buyer will get the keys to their new home, and the real estate agents will get their broker's commissions!
There are always problems that can occur, but hopefully everyone has prepared for this day, and it will go smoothly! Isn't that what everyone wants? Share your closing experience below, and if you need help with your next real estate transaction, I'm only a phone call away!
Kelly Dix, Real Estate One, 586-899-6666 - Kellydixrealestate@gmail.com - www.kellydixrealtor.com