An important thing to remember for a purchase closing is that just because the buyer has signed the closing documents, the property is not owned by the buyer right away.
Generally, the following items need to happen on the day of closing in order for the buyer to get the keys to the home:
- Buyers bring their certified funds to closing (If applicable because there are loans available where the buyer doesn’t bring money to closing!)
- Buyers and sellers sign all applicable paperwork for the closing
- Closing attorney’s office notarizes the signatures
- Attorney emails the signed documents needed for funding to our closing department
- The closing department reviews the required funding documents to verify everything is executed correctly
- Once the funding items are approved, the closing department authorizes the attorney to access the wired funds for the loan
- The attorney then updates the title search one more time for newly recorded judgments or liens and then records the deed and the mortgage
Now it is officially the buyer’s home, and the buyer can get the keys. There are occasions when the seller will go ahead and give the keys to the buyer at closing or before but don’t assume this is done on all closings since the seller is taking some risk in allowing the buyer in the property before the title transfer. In my opinion, it is better to close a purchase in the morning, so there is time to complete the above items and have everything recorded before the register of deeds closing at the end of the day. If you have a late afternoon closing, be prepared for the recording to happen the next business day.
For more questions on how a purchase closing and mortgage loan funding works, contact our team today.