Once your offer to purchase a home is accepted by the seller, the lender and the title company will start the “Closing Process”. The lender and the title companies will be working simultaneously to prepare documents and ensure the title of the property is free of liens, breaks in the title chain or claims to the home. It’s very important to work closely with both lender and title. To help with the process of closing, understanding the title company’s needs will help with an on-time closing.
Upon acceptance of the offer by the seller, the Realtor will request title work from the title company processing the closing transaction. The goal during the process is to insure there are no defects or issues with the title work before taking ownership on the home. Michelle Winoweicki with Woodland Title in Traverse City, MI recommends you should be on the lookout for any recorded easements, covenants or restrictions. Always review those items with the realtor or title agent to make sure you’re aware of anyone that may have a right to use or access a portion of the property, and also to know about any building and use restrictions (i.e., are fences, sheds, pole buildings allowed on the property).
As you approach the closing date, many things will come together between the lender and the title company. The title company will be processing the paperwork regarding title, deeds, and loan documents. As such, the disbursement of funds is also the responsibility of the title company. The lender will wire the loan amount to the title company, process your earnest money deposit as well as receive any funds you are required to bring to closing. Most funds could be received in the form of a cashier’s check or a wire transfer.
Michelle Winoweicki with Woodland Title cautions the use of wire transfer of funds. “As you may have heard, wire fraud is a huge problem right now. When you are ready to close and send funds to the title company it’s very important to know who your title company contact is and to have verbal communication with that person. They will make sure that you are provided with the correct wiring instructions. You should never accept wiring instructions by email only. They should always be verified over the phone or in person with the title company. It is usually safer to bring a cashier’s check to closing instead of sending a wire, so you should ask the title company if that is an option. At Woodland Title, we prefer cashier’s checks instead of wires and recommend them if it is possible.”
With open communication between the lender, title company, Realtors and yourself; the closing process is often times smooth and easy. Your Realtor and the team of people working on the closing process knows how important the purchase of a home is for you and/or your family. The more knowledge and information you have will minimize the trap of “Not knowing what to know”.