The Closing Process for Sellers

After weeks or months, you finally found a seller. The negotiations are over, and the contract is signed. But the process of selling your house is not over. The final stage of selling your home, the closing process, now goes into effect.

The closing process isn’t particularly stressful, especially for the seller. It’s a chance to take a break and focus on your own move rather than trying to find someone to buy your house. And the closing itself only takes a matter of hours. However, waiting for the bank to process the buyer’s mortgage loan can take a month or even longer.

There are plenty of guides out there for the buyer during the closing process but fewer for the seller. So here’s what you can expect.

What Happens in the Closing?

A big part of closing is signing off on the final paperwork. The buyer will finalize the paperwork to get their loan from their lender and you’ll sign the paperwork to transfer ownership to the buyer. This will take place in your attorney’s office, usually. The buyer and the lending company will also have their own attorneys, and the title company will probably hire a closer to serve as a middleman. The good news about having so many parties involved in the closing is that most of the work is done by the attorneys. You just flex your signature. To transfer ownership, you’ll need to sign:

● The Deed - the actual document transferring ownership

● Settlement Statement - containing any settlement charges

● Any applicable proration agreements - for things like taxes, HOA fees and utilities

● A Name Affidavit - to ensure that you are in fact the person legally able to transfer ownership of the property

● A Closing statement - basically listing all of the documents you’ve already signed

Do You Have to Attend?

Actually, as the seller, you’re the only party who doesn’t have to attend. You may pre-sign documents and send them to your attorney, who will bring them to the closing for the buyer to sign. You can even turn over power of attorney so that so that your attorney can sign them for you. Some sellers feel more comfortable staying in the loop through the entire process and therefore attend the closing. But if you’re ready for a break or you’re busy packing up to move, you don’t have to go to the closing.

When Do You Get Paid?

You get paid when the lender finishes processing the mortgage loan for the buyer. This typically takes about 30 days but possibly longer if it’s a busy season. Once the loan is processed, the lender will send you a check. This is part of why it’s ideal for the buyer to be pre-approved before they make an offer. It won’t rush the process if they’re pre-approved, but if you’re ready to move, you don’t want to have to wait for the buyer to get approved and then for the bank to process the loan.

Overall, the closing is the chance for you to finally let out a breath. Then while you’re waiting for the lender, focus on finding your new home and moving out yourself. Your listing agent can also answer any further questions you might have about the closing process and what it means for you.