Buying or selling a home is an exciting time and that excitement should not be dampened by unanswered questions and unwelcome surprises. The closing is the end of the long process of buying a house. It refers to the day you close the deal on a piece of real estate and on the mortgage to buy that real estate. Our attorneys want to make the residential closings process as simple and stress free as possible for you; therefore, we review and explain all documents thoroughly. Leading up to the closing we stay in constant communication with the realtor, lender, title insurance companies, insurance agents, and you. It is our goal to make this process as pleasant as possible and we take our job seriously.
Timing is critical when scheduling the transaction. Here are a few things to consider:
- Current living situation. If you are renting, you’ll want to inform you lender that you would like to close at least fifteen days before your lease ends. If your plan is to do some work on your new home before moving in, pick a date a couple of months before you have to move from your rental. If you’ll be moving out of a house that you are selling, you’ll be juggling two closing dates. Most homeowners need the cash from the first closing to pay for the second closing, so please remember to communicate this information to both your lender and your real estate attorney. But beware; two closings in one day can make for a disaster if the funds are not received from the sale in a timely manner.
- Mortgage considerations. Make sure the closing date is set before your lender’s commitment — or any interest rate lock — expires.
- Work schedule. Though most well-run closings last only about an hour, you don’t want to try to squeeze this into a lunch break.
- Do not plan to move the day you close. In South Carolina the property is not officially yours until the Deed is recorded. And, if the closing is scheduled for late in the day, or if the seller is signing documents out of town, your Deed may not record the same day you sign.
- If you are scheduling a closing at the end of the year, keep taxes in mind. Any points and interest paid before the New Year can become deductions for this year’s taxes. Check with a tax adviser for the timing of any other deductions.
Hand over the money: The buyer and sometimes even the seller are expected to have provided the funds on or before closing. Our firm requires all funds be wired to our Trust Account. Our real estate paralegal will notify you of the amount needed for closing as soon as she has all the needed information from your lender.
Sign here … and here … and here: Most residential closings are actually two closings. You’ll be closing on the purchase of real estate, and you’ll be closing on the mortgage loan you are taking to buy that real estate. All that paperwork will have to do with one or the other. Some documents are common to most closings, and other documents will be unique to your area or situation.
Recording: After you have signed all the documents required by your lender and attorney, your attorney will then obtain the Deed from the Seller’s attorney. We then do a final check on the title of the property and record both the Deed and Mortgage on your behalf. Once recorded the house is yours! We then disburse all funds on your behalf to the seller and other parties whose invoices were listed on the settlement statement. Smile! Now you get the keys!