What to Expect on Closing Day

Closing day is often an exciting and long-awaited day for both buyers and sellers. It can also be stressful. Both the buyers and sellers want everything to go right, and have invested time, energy, and money into this moment: transferring the house from one hand to another. In that tension, they may find themselves wondering what exactly to expect.

Of course, it’s different for buyers and sellers. There’s a different list of things to do beforehand and on the day itself.

Who Is Present at Closing

Obviously, the main characters in this are the buyer and seller, but these are not the only people who will be present on closing day. Both the buyer and seller’s real estate agents may be present (and the seller’s certainly will be), as well as a closing agent who works for the mortgage lender. If the closing agent is not an attorney, the lender will also have an attorney present. A representative from the title company and the lender will also be there for the big day. Closing will typically happen in the office of the title company representative.

Buyers

For buyers, closing day is the moment that your dream home actually becomes, well, yours. By now you’ve already applied for and been approved for a mortgage loan. You’ll want to read the closing disclosure from your lender, which outlines the terms of the loan as well as closing costs. You should have this at least three days before closing. Other than that, you’ll want to do a final walkthrough of the property and to have a home inspection and pest inspection done. Your lender should cover the pest inspection (and if so, it will show in your closing costs) and sometimes the seller will cover the home inspection.

When the closing day finally comes, you’ll need to bring a cashier’s check to cover closing costs and any necessary type of identification. Your state ID or passport will be a must, but more may be required so make sure to check beforehand. Other than that, you’ll need to sign legal documents transferring the house to you.

Sellers

For sellers, there may be less to do. You’re letting go of this house, so much of the burden falls on the buyer who is taking it on. However, you will need to pay off any outstanding loans as well as make any repairs that were promised in the sale. You may cover the home inspection as a show of good faith. Basically, you’re tying off any loose ends and settling anything unfinished with the house before you move on. You’ll also need to be out of the house so that the buyer can be ready to move in. It may not even be mandatory for you to attend the closing as the seller, although many do, and in some cases it is preferable. This is something you can discuss with your real estate agent.

Have any more questions about what you can expect on closing day? Contact your College Station Realtor today for more information.