Once an offer has been agreed upon by the seller and the buyer escrow is “opened”. Escrow is closed when the final signing happens and monies are dispersed. But what actually happens at closing? It’s the time when all the searching, negotiating, and number-crunching is done and you finally sign what seems like 1 million papers and are handed the keys. It’s also one of the easiest parts of the home buying process unless something goes wrong. Most of the time, closing happens when everything has been completed, all documents are in place, financing is approved, contingencies are satisfied, and everything is ready for completion.
You should get a TRID document, which stands for TILA-RESPA Integrated Disclosure Rule, which means you’ll be given the right forms to make it clear exactly what you are signing, how much you’re spending on the house, and if you need to change anything last-minute. Buyers typically have three days to look over all of the documents and if there are any significant changes to the loan terms, this could trigger another three business day waiting period. It’s important that buyers get all the required documents and information and that they understand what they are signing. Lenders and escrow need to make sure that you’ve obtained homeowner’s insurance, you bring the right closing costs to the table, and you understand everything in the documents.
You want to bring proper identification to your closing as well. A simple driver’s license will do and all of these documents should tell you exactly what you need to bring to the closing table. The lender and title company will bring all the necessary paperwork for you to sign and you’ll go over all of these documents with your agent or lender before closing. Make sure to ask if there’s anything you don’t understand. There’s no such thing as a stupid question because this is a huge commitment and responsibility and your lender and title company want to make sure you understand everything.
Basically, all parties involved will meet at the closing table. The sellers will meet first with the closing agent and sign everything and then they will leave and the buyers will come in and sign everything. Everyone that’s going to be on the title needs to be present at closing and sign all of the documents. There will literally be pages you will find that proved you signed the previous form.
Closing is a big step and the final step in the process. Congratulations! You just bought a house!