Closing
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What to Expect
At Forward Title, we aim to provide a seamless closing experience for our clients. Please read below for what to expect at closing for buyers, sellers and agents.
Buyers
At the closing, we will sign the documents that are needed to purchase the home, as well as the loan documents that the lender provides. We will also discuss making your first mortgage payment (if applicable), where future bills for the property will be sent to, and any other questions you may have.
Title Requirements Before Closing
We will send you 2 forms to fill out that help us prepare for closing. One that asks for general questions, and one password protected form that asks you to upload more secure information. Please feel free to reach out to us with any questions throughout the process!
Other Pre-Closing Items
Discuss with your realtor about any items that need to be taken care of prior to closing. Some pre-closing items may include: Getting a property inspection. Setting up homeowner insurance. Supplying your lender with documents. Setting up BGE (gas and electric) to begin on the closing date (or possibly later if there’s a rent back)
What to Bring
Please bring a valid driver’s license(s) to closing. If you do not have a valid driver’s license, please reach out to us prior to closing for possible alternative options.
What happens at Closing
We will sign the title and loan documents (if applicable) (more information about the documents is listed below). We will also discuss what to expect after closing and topics related to homeownership.
Keys
You will either receive keys at closing or directly from your agent (or they may be in a lockbox at the property). It is a good idea to change the locks after closing. There is no way to know who else may have received keys over the years, so best to make sure that you are starting fresh with new keys!
After Closing
We will scan all the signed documents and email you copies. We will also begin the process of recording your deed. Once the deed is recorded, we will mail you the original deed and the title policy. Please hold on to these documents. Once your deed is recorded, if the property is owner occupied, you can file for the homestead tax credit. Reminder to update your address with the MVA!
ALTA
The ALTA combined settlement statement lists the closing figures for both sides of the transaction. It has the same numbers as listed on the closing disclosure, but lists it in an “accounting” style with credits and debits and also lists the seller side of the transaction as well.
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Closing Disclosure.
This is a lender document that lists a breakdown of all the closing costs, the amount you brought to closing (i.e. “cash to close”), the earnest money deposit that you provided when you signed the contract, the amount of interest paid over the term of the loan, and contact information for the agents, lender, and title company.
Deed
The Deed is what transfers the property from the seller to you. It lists the purchase price of the property, the names of the sellers (“grantors”) and purchasers (“grantees”), and also how you, as grantees, are taking title to the property (i.e. tenants in common, joint tenants or tenants by entirety). It is signed by the seller, notarized and signed by the settlement attorney.
Deed of Trust
The Deed of Trust is what records the lien on your property, and in a worst case scenario allows the lender to foreclose on the property if payments are not being made. The deed of trust gets released when the loan is fully paid off, which will happen at the end of your loan term, when you refinance the property or when you sell the property.
Note
The Note is what obligates you to the lender for the loan amount. It lists important information about the loan such as the loan amount, first payment date, lender name, term of the loan, interest rate, monthly principal and interest amount, when the loan would be considered late etc.
Documents
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Title Requirements Before Closing
We will send you 2 forms to fill out that help us prepare for closing. One that asks general questions, and one password protected form that asks you to upload more secure information. Please feel free to reach out to us with any questions throughout the process!
Other Pre-Closing Items
Discuss with your realtor about any items that need to be taken care of prior to closing. Some pre-closing items may include: scheduling a moving company, scheduling to cancel or transfer services related to the property (BGE internet, security etc.) as of the closing date (or possibly later if there’s a rent back).
The week before
As the closing date gets closer, advise your insurance agent/company that you will be closing on your property shortly and they can help you cancel your homeowner’s insurance as of the closing date (or some people do the day after), and let them know where they can refund any excess funds. Let your current lender know your new address after closing, so they mail any escrow refund to the correct address. Cancel any autopays connected to the property.
What to Bring
Please bring your valid driver’s license(s) to closing. If you do not have a valid driver’s license, please reach out to us prior to closing for possible alternative options. Ask your agent if you should also bring all sets of your keys to the closing, or if you should bring one set and leave the rest at the property, or give them to your agent to transfer to the other agent.
What happens at Closing
We will sign the closing documents (more information about the documents is listed below). We will also discuss what to expect after closing.
After Closing
We will scan all the signed documents and email you copies. We will also begin the process of recording the deed and paying off your mortgage (if applicable). A few weeks after closing you can expect to receive any excess funds from either your insurance company and/or your mortgage company. Please reach out directly to them if you don’t receive anything!
ALTA
The ALTA combined settlement statement lists the closing figures for both sides of the transaction. It has the same numbers as listed on the closing disclosure, but lists it in an “accounting” style with credits and debits and also lists the seller side of the transaction as well.
Closing Disclosure.
This is a lender document that lists a breakdown of all the closing costs, the amount you brought to closing (i.e. “cash to close”), the earnest money deposit that you provided when you signed the contract, the amount of interest paid over the term of the loan, and contact information for the agents, lender, and title company.
Authority to Proceeds
This document lists how the proceeds of the sale and 1099s should be distributed between multiple sellers. It can go jointly to both sellers or be distributed directly to the various parties, as long as everyone is on the same page.
Disbursement Instructions
The disbursement instructions outline who we should provide the proceeds, whether by escrow check or by wire transfer. If you would like us to wire funds after closing, please have a voided check with you, and please confirm the routing number verbally with your bank prior to closing. If the property is owned by an estate, the proceeds check would be made payable to the estate, or the wire would need to go directly to an estate account.
1099 Exemption
The 1099s gets submitted to the IRS with information regarding the sale including the gross purchase price, the seller's SSN or EIN and the seller’s forwarding address. The gross proceeds are typically not an accurate reflection of what the seller’s tax liability will be, and we’d recommend having an accountant help calculate your tax liability. It's also a good idea to talk to an accountant prior to closing to get a sense of what your tax liability may look like.