Buying real estate is one of the biggest life investments you’re going to make, but the property’s not officially yours until after the closing. Take a closer look at what to expect at your real estate closing in Texas.
Where will it happen?
Closings typically take place in the escrowee’s office. The escrowee is the title insurance company. However, this setting is not etched in stone; the lender may host a closing, acting as escrowee. It may even take place in your attorney’s office.
Will the seller attend?
Sellers do not have to attend the closing although many do. If sellers aren’t there, you can still expect the seller’s lawyer if they have one. Also present will be the seller’s representative, their real estate agent and a notary public.
On the buyer’s side is an attorney if they have one. Also present will be the lender’s representative, the real estate professional and the closing agent representing the title company.
Either buyer or seller can give a lawyer power of attorney. As a proxy, they can sign incidental documents.
What takes place at the closing?
Once everyone’s settled in, a predictable process takes place during the closing. It includes the following:
- There is a review and signing of loan documents. The most likely documents will include a mortgage or deed of trust, the promissory note and the Closing Disclosure.
- Proof of inspections and homeowners insurance is provided.
- If applicable, the buyer turns over a cashier’s or certified check for the down payment as well as funds for prepaid interest, closing costs, taxes and insurance. In today’s high-tech world, these funds may take place via wire transfer or online.
- Lenders hand out funds that cover the amount of the home loan to the closing agent.
- Dependent on the terms of the loan, an escrow or impound account to manage property taxes and homeowners insurance may be set up. The transaction may include monthly mortgage payments.
- The buyer receives the keys to their property.
While your representatives will look out for your best interests, it’s crucial to have an understanding of how the closing works. Any error can cost you or interfere with your chances of getting that real estate.