You’ve found the home of your dreams, made an offer and your offer was accepted. Congratulations on your new home purchase! But now what? Now the countdown begins to a “closing” or the “close of escrow.” This is a process that will take a little time.
This process likely started with decisions specified in your offer. After your offer is signed, most real estate contracts or purchase agreements identify who will handle the closing or escrow. Depending on where you live, the neutral settlement agent could be a title company—such as Whipple Title—or perhaps an attorney. Any deposits or earnest money is often held by the title company or selling agent.
Tax information, loan payoffs, survey (if necessary), homeowner/maintenance fees, inspections/reports, as well as legal papers are ordered. A title search is ordered. A title search is a search made of the public records. Records searched include deeds, mortgages, paving assessments, liens, wills, divorce settlements and other documents affecting title to the property. Title examination is the examination of the documents found during the title search that affect the title to the property. This is when verification of the legal owner is made, and the debts owed against the property are determined. Upon completion of the search and examination, a title commitment/ preliminary report is prepared, reviewed, and sent out to interested parties.
Insurances are ordered—Title insurance, which will cover you for the entire time you own the property. There two types of insurance are Loan Policy—to protect the lender in the financial transaction, and the other is the owner’s policy that protects you.
The Settlement Statement or the Closing Disclosure is created and provided for your review. As the names suggest, this statement sums up your transaction, specifying the financial costs and fees. Whipple Title uses the settlement statement or closing disclosure to confirm that the terms of sale specified in the purchase agreement are met, the funds will be distributed to the appropriate parties and the documents are properly executed and ready for recording.
At this point, you’ll be contacted to schedule closing and signing the formal documents. We make this part as flexible and easy as possible for our clients with mobile closings—we come to you—e-signings when feasible or visiting our conveniently located office.
After the signing has been completed, Whipple Title will forward payment to any prior lender, and pay all parties who performed services in connection with your closing (if they have not been paid). The transaction documents are recorded in the county in which the property is located. Title insurance policies are prepared and sent to the new lender and to you. Once the property has recorded at county, keys can then be received by the buyer.
Have questions about the closing process or Whipple Title Agency? Call us today at 330-477-3589 or use the contact form on our contact page.