How The Real Estate Closing Process Works

There are many tasks performed behind the scenes to complete the settlement of your new home. This page is designed to educate you on those tasks so you can anticipate what is needed, when it is needed, and the potential issues that can delay your closing.

The process begins when we receive your contract 2-3 weeks before closing. From there:

STEP 1: The title search is ordered. We have a team of title examiners who review the title to your property at the courthouse, researching ownership and chain of title, payment of real estate taxes, any lien of record, and the legal description.

STEP 2: The title search is then given to one of our processors, who in turn will receive written instructions from your mortgage company regarding the terms of your loan. Your processor will contact you and the other parties in the transaction to confirm the date and time of closing, and will walk you through the rest of the settlement process to the day of closing.

STEP 3: Our title insurance underwriter reviews the title search, the survey and contract to determine potential risk in the transaction. Any clouds on the title, such as judgments, IRS liens, unreleased deeds or trust, and ownership claims are identified for correction prior to the settlement. The underwriter will provide a commitment to insure, called a title insurance binder, to your lender to advise the status of the title to the property.

STEP 4: Our processor then begins to accumulate all of the other documents for your closing including the deed, the termite and moisture letter, seller mortgage payoffs, repair bills, the preliminary accounting statement (called the HUD-1 settlement statement) and your homeowners insurance. All of these documents are then faxed to your lender for their review and approval. This normally takes place 2-4 days before closing.

STEP 5: Once your lender gives final approval to close, they will send us your loan documents for signing and final adjustments to the HUD-1 settlement statement. This normally takes place the day before your scheduled closing. Your processor will call to confirm the time of closing and give you a final amount for your cashier's check.

STEP 6: The sellers come in and sign their documents either the day before or early the day of the closing - normally a 15-20 minute appointment. The buyers follow at their appointed time, with their closing usually taking 40-50 minutes. Once the documents are signed and your closing funds have been received, the deed is presented and keys are handed over.... you are the new homeowner!

STEP 7: The deed and the deed of trust are taken to the courthouse the following day for recordation. Funds are disbursed and all parties receive their checks. Signed documents are returned to your lender.