Find Our Most Frequent Questions BelowVaughn Law Firm is committed to our clients. We are here to answer any and all of your real estate questions. We can provide information to buyers and sellers. We also provide information about refinancing.
what is a loan closing?
If you are refinancing your home’s mortgage (as opposed to buying a new home), the mortgage loan is “closed” by a real estate lawyer. The closing is the meeting between the borrower and the closing attorney (and occasionally the loan officer) where the borrower signs the loan documents to complete the transaction.
At the closing, borrower and lender will provide their funds to the closing attorney, the borrower will sign the documents required by the lender for the loan, along with a deed to secure debt which transfers an interest in the property to the lender to secure the repayment of the loan. The closing attorney will then payoff any existing loans or liens against has secured by the property, and disburse funds according to the settlement statement.
What is a real estate “closing”?
A real estate closing, or the “closing” as it often called, is a meeting between the buyer and the seller, the buyer and seller’s real estate and agents, and occasionally the loan officer, conducted by the closing attorney for the purpose of signing all documents necessary to transfer title of real property from the seller to the buyer as well as the lender’s loan documents. Once you have signed a sales contract for your new home, and arranged for financing, and completed all necessary inspections and repairs, you are ready to complete the purchase. The buyer and seller will meet at a real estate lawyer’s office to sign all of the documents necessary to transfer title from the seller to the buyer, which include:
- a closing disclosure/settlement statement authorizing the disbursement of all funds;
- loan documents from the bank or mortgage lender financing the property
- a deed of conveyance from the buyer to the seller
- miscellaneous other documents to complete the terms of the sales contract
At the closing, borrower and lender will provide their funds to the closing attorney, the seller will transfer the title to the property to the buyer by a written deed. The “closing attorney” who handles the closing will then payoff any loans or liens the seller has secured by the property, and disburse all of the monies owed to the seller, the real estate agents and other vendors owed money on the sale.
what does the closing attorney do?
In a typical real estate transaction or loan closing, the closing attorney performs the following services:
- Researches the title to the property to verify the record owner of the property, to verify that the owner has marketable title and to identify the lienholders who will need to be paid off at closing to transfer marketable title to a buyer and to properly secure any new loan to be secured by the property.
- Obtains payoff information for existing loans and other liens.
- Obtains taxes and homeowner association dues (if any) which will need to be paid and or prorated at the time of closing.
- Provides the lender with a title commitment and other information that the lender needs to complete the loan and generate a loan package.
- Prepares a settlement statement for the lender and the Realtors to approve.
- Schedules a closing date and time to complete the transaction according to the terms of the sales contract and the lender’s closing instructions.
- Conducts a closing where the buyer (or borrower) and the seller will sign all documents necessary to complete the transaction.
- Disburses all funds in accordance with the settlement statement.
- Records deeds, deeds to secure debt, and other documents with the Clerk of the Superior Court for the County in which the property is located.
- Verifies loans and other liens which were paid off at closing are properly released.
- Returns final recorded documents to the buyer and lender.
Why do I have to have a lawyer handle the closing?
What do I need to bring to closing?
- A government-issued photo ID. We are required to verify your identity at the time of closing. A valid driver’s license or passport are acceptable forms of identification, as long as it includes a photograph.
- Certified Funds and Checkbook. Whether you are the buyer or the seller, items sometime arise at the last minute, and you may need to write a check. For example, there may be a recording fee that we had not anticipated, an agreed fee that was not provided to our office, or a last minute repair that is added to the final settlement statement.
- Any items required by the Lender. Your lender may instruct you to bring certain documents to closing to be returned to the lender with your signed loan package.