What happens on Real Estate Closing Day?
In summary:
Soon, you will complete your final walkthrough and sign your last document, the loan will come through, and the keys will be in your hand
That day is real estate closing day, but in truth, most of it can take as little as an hour to complete
Make sure that you bring your government ID with you, as well as proof of insurance and payment instructions
You’re nearly there and ready to step into what will be your new Gig Harbor home. All you need to do is cross the “T”s and dot the “I”s, so what is there to worry about?
While most of the whole closing process can take up to 60 days, or even longer, according to NerdWallet, knowing what you need to do on “real estate closing day” is crucial so that you don’t trip up as you approach the finish line.
Below, we discuss the timeline of that specific day, from turning up to the keys dropping into your hand. Learn what will fit into that last day, and what the biggest risks are that could cause a last-minute delay.
What Is The Purpose of Closing Day?
Closing day is the informal name for the period, usually a day, in which you make your ownership of a property official. You’re done with all the preliminary closing steps, so it’s time to handle the last items. You confirm that the details are all in order, perform final checks, and transfer the deed to your name.
What Happens On Real Estate Closing Day
Try to think of closing day as encompassing five key beats. Your real estate closing checklist should include:
Walkthrough
Signing
Funding
Recording
Receiving the keys
Before proceeding with the last one, you will need to complete all the others and confirm that they each resolve. To do this, work with a talented real estate agent to make sure you have access to:
Your real estate agent
A title professional or notary
A real estate attorney
Ensure that you plan the day with ample time in mind. You may need to wait between steps while documents are organized and funds confirmed. There will then be a further wait while the county official updates the property’s title ownership.
How Long Does Signing Closing Papers Take?
One of the first things that you will need to do is to sit down and sign several documents. While this is likely to take at least an hour, your agent or a closing attorney should already have summarized all of the key details for your consideration, and so your signing should be a legal formality. To confirm each of these steps, a signing professional should either be present or, in the case of using Remote Online Notarization (RON), be accessible.
During or before signing, expect to receive the Closing Disclosure, which will break down all of the final costs of the property. You or a member of your team can then compare this to your earlier loan estimate to ensure that you can afford to pay for the location.
At this time, you should also make a final walkthrough of the room with your agent and confirm that everything agreed upon, such as repairs or renovations, is complete. Test all utilities and appliances that you expect to work, too, to avoid potential disappointment. Also, if you have any questions to ask your closing attorney, now is the time.
Paying for and Receiving the Property
You will need to ensure that the money arrives in your account via a verified wire transfer or via a bank-issued cashier’s check. In most cases, both of these are acceptable. However, you should discuss the possibilities with the person you are buying from so that they are aware of which one you plan to use on the day.
Once you have signed the documents, your lender will send the funds, and an escrow agent can confirm receipt of these. Then, you will need to wait for the county to update deed records before your agent coordinates the transfer of keys
Should I Start Packing Before Closing?
You should have already prepared most of the items that you wish to move across as soon as possible. If you want to go minimalist, however, start with just the non-essentials. Then, when you confirm the last of the details, you can make packing your top priority if you plan to move into your new home immediately.
Money and Documents You Need for Closing
Before you arrive, you should have already collected all the essential documents to prove your intent and prepared a money transfer for the payment.
Ask your lender to confirm the details of your closing disclosure to help you understand the nuances of the deal you are about to sign. Alternatively, ask your agent to review it with you, highlighting any unexpected terms you should be aware of and pointing out any potential red flags.
Then, when you have confirmed you want the loan, but before you collect the money, ensure that you have set up the payment method already agreed with the other party. Then, when you arrive, have your government-issued ID and proof of homeowners’ insurance with you, as well as any certificates requested by your agent. These will ensure that you can demonstrate your capability to buy the property at various stages of the process.
Ensure a Seamless Closing Day
Real estate closing day need not be a challenging experience. Review the above checklist in advance, organize your documents, confirm you have everything with you, and ensure you arrive on time to complete the sale.
To make it even easier, Schulte & Co works hard to offer a concierge service to every one of our clients. We work one-on-one with buyers and sellers, taking their unique needs into account and making it as easy as possible to close a sale in Gig Harbor.
Contact Schulte & Co., and we will do our best to guide you, step by step, starting today.
