Buying a home is one of life’s most exciting experiences. When the offer for the home of your dreams is accepted, all that’s left is to finalize the paperwork and the financing. That’s where Commonwealth Suburban comes in.
Our Closing Services Include:
We have the knowledge and experience in real estate to ensure everything goes smoothly from document preparation to legalities and everything in between. Our specialties include:
- Procuring complete and accurate payoff statements
- Communication with the lender to assure smooth flow of all processes
- Preparation of HUD-1 forms (closing disclosures?)
- Preparation of the proper affidavit of title
- Timely forwarding of title transaction package to the lender
- Recording of required official documents
- The proper disbursement of money
- Assuring the return of the transaction package to the lender
At Commonwealth Suburban, our closing specialists and real estate title attorneys are all under one roof, so you get a smooth, streamlined closing process that is thorough, efficient, and accelerated.
All About the Closing Process
The closing process can be overwhelming for most, and it can take anywhere from 30 to 90 days. Make sure you understand what you need to have in place prior to closing on a home.
Closing Costs
These costs cover any services required for the property to change hands, such as title work, appraisals, inspections, document preparation, recording fees, etc. Depending on your state, they can total anywhere from 1% to 2% of a home’s purchase price, and typically cover:
Mortgage Costs – Loan origination fee, document preparation, points, commitment fee, underwriting fee
Outside Vendor Costs – Appraisal, credit report, flood determination fee
Title Costs – ‘Closing’ settlement fee, title/abstract search, title insurance premium (for lender and owner policies)
Government Fees – Title recording and transfer tax fees
You will also be responsible for any ‘pre-paid items’, which include the upfront payment of typical ‘year one’ home ownership costs, such as homeowner’s insurance premiums and real estate taxes. These can add another 1% to 2% of the home’s purchase price.
Owner’s Title Insurance
While not necessary, having an Owner’s Title Insurance policy can be an excellent investment. It protects your ownership interest in your home for as long as you or your heirs own it, in the event your ownership is challenged by any title mistakes or irregularities that occurred prior to the issuance of the policy.
In short, a relatively low, one-time title insurance premium covers you against any pre-policy title defects that could otherwise cost you tens of thousands of dollars, and even your home.
Escrow
An escrow is an arrangement in which a neutral third party, called a settlement agent, holds legal documents and funds on behalf of a buyer and seller. The settlement agent distributes funds and documents according to the buyer’s and seller’s instructions. By acting as a neutral third party on behalf of the buyer and seller, the settlement agent can save time and facilitate the real estate closing.
What Should I Bring to the Closing?
Be sure to bring the following to your closing appointment:
Valid photo identification (e.g. driver’s license)
Social Security Number(s)
Wired funds or a cashier’s check payable to Commonwealth Suburban Title Agency for funds needed to close. Please note that funds in excess of $10,000 must be submitted to Commonwealth Suburban via wire transfer, according to the Ohio Good Funds Law. Contact our office for wire transfer instructions.
Mortgage Closing FAQ:
All About the Closing Process
The mortgage closing process can be overwhelming and confusing for many, taking anywhere from 30 to 90 days. But we are here to help you navigate the process. We’ll help you understand what you need to have in place before closing on a home.
Below are some frequently asked questions our clients ask during the closing process. We provide answers to help explain the process and put your mind at ease:
In a mortgage, “closing” refers to the final step in the home buying process when all the necessary legal and financial documents are signed and property ownership is officially transferred from the seller to the buyer. The closing is also known as the “settlement” or “escrow” process.
During the closing, parties involved in the transaction, such as the buyer, seller, real estate agents, attorneys, and lenders, gather to complete the necessary paperwork and finalize the mortgage loan. The closing usually occurs at a designated location, such as a title company’s office, attorney’s office, or escrow company.
The closing process ensures that all legal and financial aspects of the property purchase are correctly executed and ownership is transferred from the seller to the buyer. It is essential to review all the closing documents carefully and seek professional guidance from an attorney or real estate agent to ensure a smooth and successful closing.
Many key activities take place during the mortgage closing appointment. Here is a list of the most important things that happen at the meeting:
Reviewing and signing documents: The buyer and seller review and sign various documents, including the mortgage note, deed of trust or mortgage agreement, loan disclosures, title documents, and other legal and financial paperwork related to the transaction. The buyer also signs the promissory note outlining the mortgage loan terms.
Paying closing costs: The buyer is responsible for paying the closing costs, which include fees for various services, such as appraisal, title search, title insurance, attorney’s fees, loan origination fees, and other related expenses. The closing costs are generally paid by certified check or wire transfer.
Funding the mortgage loan: If the buyer is financing the purchase with a mortgage loan, the lender gives the loan funds to the seller or their representative. This amount and any down payment from the buyer cover the agreed-upon purchase price.
Recording the transaction: After all the documents are signed, the title company or attorney records the deed and mortgage with the appropriate government office. This step officially documents the transfer of ownership and creates a public transaction record.
Distribution of funds: Once all the paperwork is completed and the transaction is recorded, the funds are distributed to the appropriate parties. This includes paying off any existing mortgages or liens on the property, reimbursing the seller for any agreed-upon expenses or credits, and providing funds to the seller’s agent and other involved parties.
You must bring certain information to your mortgage closing appointment. Bring the following:
- Valid photo identification (e.g., driver’s license)
- Social Security Number(s)
- Wired funds or a cashier’s check payable to Commonwealth Suburban Title Agency for funds needed to close. According to the Ohio Good Funds Law, funds over $10,000 must be submitted to Commonwealth Suburban via wire transfer. Contact our office for wire transfer instructions.
Closing costs are expenses that are incurred during the process of buying or selling a property. These costs are in addition to the property’s purchase price and are typically paid at the closing or settlement of the real estate transaction.
The closing costs can vary depending on factors such as the property’s location, the type of loan, and the terms negotiated between the buyer and seller. Here are some common examples of closing costs:
Loan-related fees: These include costs associated with obtaining a mortgage loan, such as loan origination fees, application fees, credit report fees, appraisal fees, and underwriting fees. Lenders may also charge discount points and fees paid upfront to lower the interest rate on the loan.
Title-related fees: Title insurance fees are typically required to protect the buyer and lender from potential property title issues. There may also be charges for title searches, examinations, and recordings.
Attorney or escrow fees: An attorney or an escrow company sometimes facilitates the closing process. Their services may include reviewing documents, preparing the closing statement, and meeting all legal requirements.
Home inspection fees: Buyers often hire a professional home inspector to assess the property’s condition. The buyer typically pays the inspection cost and is not included in the closing costs, but it is a necessary expense to be aware of.
Property taxes and insurance: Depending on the timing of the closing and local regulations, the buyer may need to prepay a portion of property taxes and insurance premiums. These funds are held in escrow and used to cover future payments.
Recording and transfer fees: When the property changes ownership, fees are associated with recording the new deed and transferring the title. These costs vary by jurisdiction.
Knowing about these fees will help you budget appropriately and understand the financial obligations associated with the transaction.
While unnecessary, having an Owner’s Title Insurance policy can be an excellent investment. It protects your ownership interest in your home for as long as you or your heirs own it if your ownership is challenged by any title mistakes or irregularities that occurred prior to the policy issuance.
In short, a relatively low, one-time title insurance premium covers you against any pre-policy title defects that could otherwise cost you tens of thousands of dollars and even your home.
Escrow refers to a financial arrangement where a third party holds and manages funds or assets on behalf of two parties involved in a transaction. The third party, known as the escrow agent or escrow company, acts as an impartial intermediary and ensures that the terms and conditions of the transaction are met before releasing the funds or assets to the intended recipient.
Escrow is commonly used in real estate transactions but can also be utilized in other contexts, such as business acquisitions, online purchases, and legal settlements.
The purpose of escrow is to provide a level of security and protection for both the buyer and the seller, ensuring that each party fulfills its obligations before the funds or assets are transferred.
The use of escrow provides a secure and neutral platform for conducting transactions, as the escrow agent ensures that the funds or assets are only released when all the specified conditions have been satisfied. This helps to protect both parties and minimize the risk of fraud or financial loss.
Here’s how the escrow process typically works in a real estate transaction:
Agreement and deposit: The buyer and seller enter into a purchase agreement that outlines the terms and conditions of the sale. The buyer typically provides an earnest money deposit, which is held in escrow.
Escrow instructions: With the assistance of their real estate agents or attorneys, the buyer and seller create instructions that specify the conditions and requirements for the release of funds or transfer of assets.
Document verification: The escrow agent verifies and reviews all necessary documents, such as the purchase agreement, title report, loan documents, and other relevant paperwork.
Fulfillment of conditions: Both the buyer and seller work to fulfill the needs outlined in the escrow instructions. This may involve inspections, repairs, financing, or resolving title issues.
Closing and disbursement: The escrow agent prepares the final closing documents once all the conditions are met. The buyer signs the loan documents, the seller signs the deed and other transfer documents.
The buyer’s funds, including the down payment and loan proceeds, are deposited into escrow. The escrow agent disburses the funds to the appropriate parties, such as the seller, real estate agents, lenders, and any other involved parties.
