Congratulations! You have made it all the way through to the closing in the process of selling your home. By now, you should have received a date and time to travel to the title company to sign the closing documents (if you are not doing it remotely). Your buyer has received the same notification. After all the hard work, you are going to be handing the keys of your home over to their new owners. Most find it a mixed bag of emotions. It is bittersweet as memories are made in a home and you are now leaving it. You are excited because the long process is finally come to an end and nervous about signing legal documents. For the most part, however, closing is a time of satisfaction and relief. Here are three things to remember about the actual closing process.
What exactly happens at closing? – Closing is when all the required paperwork is signed to transfer ownership of the property to your buyers. The escrow agents will have all the documents prepared beforehand by reviewing the purchase contract and supporting documents. All fees are paid at closing including title searches, taxes and other closing costs (such as any outstanding liens). Since you are the seller, you will have all the expenses debited to your balance. Of course, if you end up owing more than you make from the property sale, you will need to make sure to bring a cashier’s check in the amount to closing. The title company will let you know the correct amount. Please also make sure to bring a picture ID. Finally, don’t forget to bring things from the house to give to the buyers like the house keys, garage door openers and appliance manuals.
When will you get a check? – If you do end up making money when selling your home, you probably expect the get the funds immediately. However, this is not always the case. Why? It depends on several factors. First, when are you closing on the home? Is it 5 pm Friday afternoon? If this is the case, some lenders might not fund it until the following business day. When are your buyers signing the paperwork? If the buyers are closing after you do, you will not get a check because most lenders will wait until their clients have signed before releasing funds. What if there is a delay in funding? Some banks might delay funding for hiccups on the buyer’s side. Be assured, however, if you are due funds, you will get them. You just might not walk out the door with money in your pocket.
The closing is not the end – You might think closing is the end of the process when selling your home. It can be if everything goes according to plan and your buyers are happy with everything. However, this is usually not the case. The first item to understand is that sales contracts are perpetual in nature and continue past the transfer of ownership. Why is this important? It can be if something is not to the buyer’s satisfaction. For example, the repair you said you did was not performed up to the buyer’s expectations. You might be asked to provide further funds to make the repair right. There are other more minor items that often come up in the sale of a home. For example, you might leave some property behind, or leave trash on the curbside for pickup that never gets picked up. Or, the new owners could have a question about some feature of the home. For the most part, you can expect to continue to have interactions with the buyers for some days or weeks after the sale.