So you’ve made it through the home inspection and the appraisal on your home sale and now you only have to ‘finish up’ with the closing, right?
First of all ‘closing’ is a process not an event. There are lots of steps involved in the last week before recording, which is actually when the home changes ownership. As of October 3 of this year, there is a new federal set of guidelines (TRID) that involves a very complicated sequence of timed events which must be taken into account as we schedule this last week of activities.
There are two perspectives for all this: one for the seller and one for the buyer. However, they are totally intertwined. It starts with the final approval of the loan and the generation of a financial summary of the transaction called the Closing Disclosure. Depending on the bank (and different ones are reading the guidelines differently), this disclosure must be delivered to the buyer and acknowledged by them. After this, there is a waiting period of at least 3 and up to 7 business days. Most lenders will not let anyone sign until the waiting period is over. Then, loan documents are generated, sent to escrow, and the signing appointment is set up. Both parties will sign (not at the same time) and then escrow gets clearance from the lender to record. Once recording occurs, the seller gets their funds.
This process of course gets more complicated if the buyer is getting their funds from a property sale (now there are two sets of TRID guidelines) or someone is out of town (at least one of the seller documents—the deed—must be signed ‘wet’ and the original returned to escrow before recording) or any number of logistic elements.
Here are some tips that can help the closing process go smoothly:
Tip #1: Stay organized.
Realtors are trained to help walk you through each step of the closing process, but it is helpful to keep your Realtor in the loop in regards to packing, moving, and where you will be living during the last week of the closing process. Keeping organized will help reduce any frenzied feelings and will help save you time in the long run.
Tip #2: Be patient.
Patience is key during this process. You likely want to get things done as quickly as possible, but the closing process will take some time and if you know this going into it, you’ll be better prepared to make it through without a lot of stress.
Thank goodness you have an experienced guide through all this—me! We’ll work it all together and make it over the goal line smoothly.