Are you trying to figure out what to bring to closing when you're buying real estate? Read this article to learn everything you need to know.
If you're a first time home or landowner, it can be confusing when it comes to what to bring to closing. There's so much paperwork and so many questions throughout the process, you don't want to forget something important.
Failing to have everything in order could delay the closing and cost everyone time and money. We are here to help you learn what you should bring to close as well as tips for getting to the closing table.
Continue reading for all the information you need to make closing go smoothly.
List of Documents
Use this list to check off whether you have everything you need or not. If there is anything else specific to your deal, your real estate agent or attorney will let you know. If you need to find a real estate attorney, there are many professionals that can help you.
- Photo ID
- Cashier's check
- Proof of insurance
- Final purchase and sales contract
When you go to closing, you have to prove that you are who you say you are, or you won't be able to make the purchase. You can use IDs like driver's license, state photo ID, current passport, or even a military license. Just make sure that it has your photo on it.
You can't bring a regular check to closing. You have to bring a cashier's/teller's check. You'll use this to cover the closing cost and downpayment on your new purchase. Some title companies will allow you to make a wire transfer if that works better.
If you have any questions about how much money you need to bring, who you need to pay, or any other questions, you can ask your closing agent.
With proof of insurance, the closing agent has to show proof that you have insurance on the closing day, and the policy needs to be paid up a year in advance.
As for the final purchase and sale contract—it's just to make sure everything is as agreed upon.
Who Will Be at Your Closing?
You want to make sure everyone is going to be there on time and ready to close. Make sure you're working with people that are punctual and aren't going to cause hiccups in your deal.
Many times the buyer and seller aren't at the same appointment, and they never meet, but in other parts of the country, they're at the same table signing.
The closing agent, which is usually a title officer, an attorney, or an escrow company will be there to help you through the signing process. Just make sure the closing agent understands what paperwork you're signing and how to get the property in your name.
Before closing, you and the sellers will have already agreed upon the closing agent, so you don't have to worry about any misunderstanding at closing.
Depending on what state you're in, it may be essential to have an attorney there.
Important Questions At Closing
When it comes to closing day, you need to be ready to tell the closing agent how you want to take the title of the property.
Usually, that will be between the sole owner, joint tenancy, and tenants-in-common.
As a sole owner, you're the only one on the title.
As a joint tenancy, both people on the contract have the right of survivorship. In other words, if one of the people dies, the survivor gets full ownership of the property.
With tenants-in-common, there may be an unequal share owned by the parties. They may also be able to sell their share of the ownership independently.
How does Long Will Closing take?
If you're excited to get things rolling and take ownership of your property, you might be a little impatient about it. When you get to the appointment for closing, it is going to take a little longer than if you bought something like a car.
You're going to have a big stack of papers to sign, so get ready to settle in for as long as it takes to review the papers and sign them.
Don't let the stack of papers scare you. As long as you have a real estate agent or attorney that can help you understand them, you can rest easy.
Most of the time, it will take around two hours or less to get everything signed, and then the property will be in your name.
Getting the Property of Your Dreams
Now that you understand more about closing, it might not seem as challenging to find a home or land that you want. It is a process, but you can get through it and come out on the other side.
Owning a home or land can be one of the most fulfilling things you experience. Getting through the process and paperwork doesn't have to take the fun out of things.
Make things easier on yourself and put a team together that will help you understand what's happening every step of the way. This usually means a good real estate agent and a real estate attorney. You may also include an accountant in the mix, so you understand how things are going to go with taxes.
What to Bring to Closing - Sweet and Simple
Now you know what to bring to closing and have some tips for how to get to the closing table. It can be confusing when you're working with real estate transactions, but with this information, you'll be a step ahead of many people.
Do you feel like you need more help with real estate or other topics? Keep reading our blog to get the help you need.