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Frequently Asked Questions About Real Estate Closings


Q. Who will schedule my closing?

A. The closing date will be determined at the time of contract. Your realtor or loan officer will call our office and schedule a date and time for your closing.


Q. Do I need an attorney at the closing?

A. The closing attorney represents the lender at closings and has no attorney-client relationship with the buyer or seller, regardless of who is paying for the closing costs pursuant to the real estate contract. Although most closings do not have any attorneys present on behalf of the buyer or seller, other attorneys are always welcome to help facilitate the process.


Q. Who will check the title to my new property?

A. On behalf of the lender, the closing attorney and his or her staff will examine the court house records for title matters and tax information. If you or your lender request a survey, it is also ordered by the closing attorney.


Q. Will I receive a title insurance policy?

A. Lenders title policy is included in your closing cost. For an additional premium at closing, you can obtain an Owners Policy which will protect your title against any liens or defects in title which cannot be found in a careful examination of title. We can more fully explain owners insurance to you at closing.


Q. What do I bring to the closing?

A. Please bring the following items to closing

• Photo ID
  
• Homeowner's Insurance Policy
  
• Certified funds (bank check)
  
• Documents your lender has asked you to bring to closing, if any.
  
  
  

Q. Who pays the closing costs?

A. Closing costs are negotiable between the buyer and the seller. Your real estate agent will look at many factors and discuss these costs with you. Sometimes the seller will be motivated to make a contribution on costs to help the purchaser buy the house. If there are many offers, a seller will not offer to pay any costs.


Q. How will I know how much money to bring to closing?

A. At the time of loan application the loan officer will give you a Good Faith Estimate of costs. He or she will forward a copy of this to our office where you will close your loan. These figures will be used in preparing your loan documents.


Q. Can I write a personal check for the closing costs and down payment?

A. By law, personal checks can never be accepted for costs over $5,000.00. However, our office policy dictates that buyers must call in advance to inquire the exact amount in cash certified funds for the closing. We will not accept personal checks for amounts higher than $350.00. You will need to bring a cashiers check or money order from your financial institution to your closing. Again, refer to the figures from your Good Faith Estimate.


Q. What costs are not usually on my Good Faith Estimate?

A. The following is usually not included in Good Faith Estimate:

• Escrow accounts: The closing attorney will calculate the exact amount needed to establish a borrower's escrow account on the day of closing, based on the date of closing in relation to when the next property tax bill is due.
  
  
• Property taxes: The annual ad valorem property taxes will be prorated on the day of closing, with the seller owing until closing and the buyer thereafter. This also applies to homeowner's association dues, sanitation assessments and municipal taxes.
  
  
• Owner's title insurance: The lender's closing costs will include a mandatory lender's title insurance coverage. The buyer, as owner, will need to purchase his own title insurance to protect his new investment. Although optional, owner's title insurance is extremely important to have and is generally recommended on all new purchases. It is a one-time expense, is effective the day of closing and lasts forever. If the chain of title involves a prior bankruptcy, divorce, estate or foreclosure, title insurance protects against the claim of third parties. Forgeries, mis-indexing in the record room and other title defects are also covered.
  
  
  

Q. Are there any special requirements for the purchase of a condominium?

A. We will need a copy of the Hazard Insurance Policy from the association. The president of the association will provide you with a certificate which you will bring to your closing.


Q. Who should attend the closing?

A. All parties to the loan and those who will be listed on title must be present at closing. In addition, the realtors will also attend the closing with you.


Q. Will I receive copies of the loan documents?

A. You will receive a copy of each document that you sign at closing. The attorney will provide this to you in a legal document folder. This folder should be placed in your safety deposit box.


Q. How long will I be in the closing?

A. A closing generally takes about an hour. After all of the documents are signed, we will be pleased to shake your hand and give you the keys to your new home. The final step in the process of buying a new home is the real estate closing. At our office your loan will be closed in a friendly relaxed atmosphere with experienced real estate attorneys to explain, on behalf of your lender, the closing documents. We welcome the opportunity to coordinate with the agents and loan officer to make this legal process a pleasant experience for you.


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