Closings can seem like a long and nerve-racking process, but the following outlines the process clearly and simply.
Once the loan application and you have supplied the many documents required by the lender, the loan goes to underwriting. The underwriter may have some conditions before they will approve the loan fully. Once those conditions are met, and the mortgage underwriter has reviewed and approved all documentation, they issue the Clear to Close. This is typically two to three days before the scheduled closing date. At that time, the lender will require the buyer to acknowledge the closing disclosure which is an estimated break down of costs.
The lender will have notified the title company to schedule all parties for signing. The title company will inform the buyer of the final amount due for closing. By Ohio law, any amount over $10,000 is required to be in the form of a wire transfer to the title company; while any amount under $10,000 can be transferred via either a wire transfer with your bank or cashier’s check payable to the title company. Please consult your bank on this process, each bank has a different wiring policy.
While every state differs, in Ohio, we do escrow closings – not roundtable. Buyers and sellers sign at times convenient to them, all parties are not required to sign all at the same time. Document signing can be scheduled for a time and location convenient for both the buyer and the seller. Our office is always available.
Once all the papers are signed, there are a few more steps before it becomes official. The title company will send the signed papers to the lender for review. After review, the lender will wire their funds to the title company and give their okay to file. When the title company has the okay from the lender, the lender’s funds and the buyer’s funds are wired appropriately. Next, the deed will be sent to the courthouse for filing. The can happen as late as 4:00 p.m. on the day of closing. We typically schedule key delivery for the buyers at 5:00 p.m. on closing day, if possible.
It is important to remember to schedule all deliveries, utilities installations and additional property related work the day after day of closing.
It’s official – you’ve closed on your new home! Congratulations!!