Biggest Mistakes

The biggest mistakes that happen at a closing happen due to rushing things. While your Realtor, Lender and Seller all want the transaction to go smoothly, this is a very important day for them. This is the day they all get paid for their efforts. Many times they will push to close for their own benefits and not that of the buyer.

Be flexible, purchasing with mortgage financing is still a very paper intensive project. Occasionally an unforeseen delay may occur in order to get the proper paperwork ready. Be prepared to have your closing date or time changed.

Closing on the last day of the month. Avoid this day if at all possible. This is the busiest day for the Lenders, Title and Escrow companies. When people are overworked mistakes can happen. Try to close a few days before the end of a month.

Resolve all issues prior to closing. Be sure that any outstanding issues are resolved before going to closing. It’s harder to get things done after closing and you don’t want to be negotiating things at the closing table.

Get a final Good Faith Estimate from your Lender or Broker 2 days prior to closing. While these numbers will not be perfect they should be reasonably accurate. You do not want to be surprised at closing that your need an additional $2,000 -$3,000.

The Closing/Signing

Generally there are two common ways to finalize your Real Estate transaction.

One is an Escrow Closing the other is generally referred to as a Round Table Closing.

Escrow Closings: These are most common in Western States but are growing in popularity. An escrow company is an intermediary who handles all of the documents between the Buyer, Seller, and Lender and Title Company. In an escrow closing the buyer and seller are scheduled to come in for the “Signing” at different times. Once the documents are signed the Escrow Company sends the loan package back to the Lender for review. The Lender reviews the documents and if all is satisfactory, notifies the escrow company they are ready to fund the loan. The escrow company confirms to the Lender that they are ready to record the Mortgage/Deed of Trust and Grant Deed and receive the funds from the Lender. Once the Escrow Company has the necessary funds from all parties, they record the required documents at the county recorders office and “go on record”. The transaction is now “Closed” and all funds are disbursed to the appropriate parties.