Closing on a house - a very exciting time for all! Closing on a house is the culmination of many events: the offer, counter offers, negotiations, loan application, inspection, appraisal, request for repairs, insurance, repairs, loan funding, then recording the deed of trust. The house is closed on when the deed of trust is recorded (called recording). Just before recording, the loan is funded. The reason the loan is funded just before recording is so that the new owner doesn't have to pay any unnecessary interest charges. Many times, loan funding will hold up recording; if this occurs, don't panic - call your Realtor, as they will have been in touch with escrow and updated on the status of funding.
Once recording occurs, the Realtors are notified by escrow, who then notifies the buyers and sellers. Congratulations - you have just bought or sold a house! For the new owner, there are a few more documents to review and sign: one will be the key receipt. What, and how many, keys are received is important to document, especially when it involves common area keys (pools, community rooms, etc.). These keys can cost upwards of $200 and, if they need to be obtained, can take a couple of weeks. If these keys are not forthcoming, the buyers' agent needs to confirm with the sellers' agent not only that they will be forthcoming (as it was probably represented as such by the sellers' agent earlier in the escrow), but confirm the day in which to expect them. If necessary, the buyers' agent can even go so far as to request that the seller reimburse the buyer for the key(s) so that the buyer can request them from the responsible parties.
After closing, be certain to check your closing statement (sent by escrow) and your lenders Good Faith Estimate. The Real Estate Settlement Procedures Act (RESPA) allows the borrower to request to see the HUD-1 Settlement Statement that shows all actual charges imposed on borrower in connection with the settlement one day before the settlement, so you will have already received a great amount of information on the fees and charges you are paying to buy or sell the property. If you see a charge or fee that doesn’t look right, give your lender or escrow a call. (Note that the closing statement as issued by escrow is a series of debits and credits: by law, they must add up perfectly. That is, the debits must equal the credits to the penny. If you have questions about the closing statement give escrow a call first then, if you still have questions, call your Realtor.
It is a very exciting time, buying or selling a home. I look forward to the privilege of reprensenting you. Please don't hesitate to contact us with any questions you may have. Good luck in all your real estate endeavors!
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