5 Things you should know to prepare for your closing...
Lights, Camera, Closing! The closing of the sale of your home is the event we have all been working toward. Many homeowners are nervous about the process and unsure of what to expect. In Minnesota, we are a table funding state, meaning all parties get together and the closing takes place at the Buyer's Title company. This method differs from other states where properties go 'into escrow' for about 30 days and buyers and sellers close with their title companies separately during the escrow time.
1. What is a closing?A closing is the culmination of the real estate transaction. Sellers and Buyers attend and ownership of the property is transferred. The deed and mortgage documents are signed and sellers are paid.
2. Where will the closing take place? The closing will take place at the title company selected by the buyers.
3. What if I can't attend closing?There is a process called pre-signing, which allows a buyer or seller to sign the majority of the documents ahead of time and appoint a Power of Attorney. Sometimes the Power of Attorney is your spouse, relative, friend or even your realtor.
4. What is a HUD statement and what role does it play? The HUD is the complete settlement statement used at closing to show all the credits and debits to both buyers and sellers. The HUD will include all money being exchanged: the down payment, earnest money, title fees, mortgage costs, real estate compensation, and payments to the state and county for taxes and fees.
5. What do I need to bring to closing? You will need a photo ID and you will need to know your social security number. If you are a buyer, you will need a cashier's check for your down payment. The cashier's check should be made out to yourself. You will also need to know your last ten year's worth of addresses. Sellers should bring their extra house keys, garage door openers and codes to pass along to the new buyers.
Sheryl Petrashek