The Closing Process
1. Starting the process
An escrow or sales contract (agreement to close) starts the process by opening a tittle order that is then processed. Relevant tax information, loan payoffs, surveys, homeowner/maintenance fees, inspections/reports, and hazard and other insurances as well as legal papers are ordered and title commitments/preliminary reports are reviewed and sent out.
2. Title search and examination
Public records, such as deeds, mortgages, paving assessment, liens, wills, divorce settlements and other documents affecting title to the property, are searched. 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.
3. Document preparation and/or lender request for title
Review lender instructions/requirements, review instructions from other parties to transaction, review legal and loan documents, assemble charges, and prepare closing statements and set closing.
4. Settlement/closing the transaction
Escrow/settlement officer oversees closing of transaction. Seller signs deed; buyer signs new mortgage; old loan is paid off; and new mortgage is signed. Seller, real estate professionals, attorneys and other parties to the transaction are paid. Documents are recorded in the county in which the property is located.
An escrow or sales contract (agreement to close) starts the process by opening a tittle order that is then processed. Relevant tax information, loan payoffs, surveys, homeowner/maintenance fees, inspections/reports, and hazard and other insurances as well as legal papers are ordered and title commitments/preliminary reports are reviewed and sent out.
2. Title search and examination
Public records, such as deeds, mortgages, paving assessment, liens, wills, divorce settlements and other documents affecting title to the property, are searched. 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.
3. Document preparation and/or lender request for title
Review lender instructions/requirements, review instructions from other parties to transaction, review legal and loan documents, assemble charges, and prepare closing statements and set closing.
4. Settlement/closing the transaction
Escrow/settlement officer oversees closing of transaction. Seller signs deed; buyer signs new mortgage; old loan is paid off; and new mortgage is signed. Seller, real estate professionals, attorneys and other parties to the transaction are paid. Documents are recorded in the county in which the property is located.
Post Closing
- After the signing has been completed, the title agent will forward payment to any prior lender, pay all parties who performed services in connection with your closing and pay out any net funds to the seller before recording the documents with the county. This all happens without any needed involvement from the buyer or seller.
- Verifying that all of the legal, tax, mortgage and insurance issues are cleared for your real estate title transfer is our business - and we excel at it.
- Remember that when you are buying or selling a property, you are changing the legal owner of the property (that’s the essences of a title transfer).
- Any error in the process could cost your time, money and stress if it is not handled correctly. Trust the Louisiana title experts at Title Closing Group to make your closing hassle-free.
5 things not to do during the closing process
We understand that by keeping you informed and helping you prepare for the closing day, the more likely you will have a stress free closing experience. Our courteous and professional staff is proactive in their communication and works diligently to ensure the orderly and efficient transfer of real estate ... and we do it with a level of service and friendliness that is hard to beat in this industry.
1. CHANGE YOUR MARITAL STATUS:
How you hold title is affected by your marital status. Be sure to make both your lender and the title company aware of any changes in your marital status so that documents can be prepared correctly.
2. CHANGE JOBS:
A job change may result in your loan being denied, particularly if you are taking a lower-paying position or moving into a different field. Don't think you're safe because you've received approval earlier in the process, as the lender may call your employer to re-verify your employment just prior to funding the loan.
3. SWITCH BANKS OR MOVE YOUR MONEY TO ANOTHER INSTITUTION:
After the lender has verified your funds at one or more institutions, the money should remain there until needed for the purchase.
4. PAYING OFF EXISTING ACCOUNTS UNLESS YOUR LENDER REQUESTS IT:
If your Loan Officer advises you to pay off certain bills in order to qualify for the loan, follow that advice. Otherwise, leave your accounts as they are until your escrow closes.
5. MAKE ANY LARGE PURCHASES:
A major purchase that requires a withdrawal from your verified funds or increases your debt can result in your not qualifying for the loan. A lender may check your credit or re-verify funds at the last minute, so avoid purchases that could impact your loan approval.
1. CHANGE YOUR MARITAL STATUS:
How you hold title is affected by your marital status. Be sure to make both your lender and the title company aware of any changes in your marital status so that documents can be prepared correctly.
2. CHANGE JOBS:
A job change may result in your loan being denied, particularly if you are taking a lower-paying position or moving into a different field. Don't think you're safe because you've received approval earlier in the process, as the lender may call your employer to re-verify your employment just prior to funding the loan.
3. SWITCH BANKS OR MOVE YOUR MONEY TO ANOTHER INSTITUTION:
After the lender has verified your funds at one or more institutions, the money should remain there until needed for the purchase.
4. PAYING OFF EXISTING ACCOUNTS UNLESS YOUR LENDER REQUESTS IT:
If your Loan Officer advises you to pay off certain bills in order to qualify for the loan, follow that advice. Otherwise, leave your accounts as they are until your escrow closes.
5. MAKE ANY LARGE PURCHASES:
A major purchase that requires a withdrawal from your verified funds or increases your debt can result in your not qualifying for the loan. A lender may check your credit or re-verify funds at the last minute, so avoid purchases that could impact your loan approval.