Your attorney will discuss the date, time and location of the closing with you.
In general, the mortgage lender will give the first possible date and your attorney will contact you to review the best date and times for you. Keep in mind that many schedules have to be coordinated for the closing. Yours, your attorney, lender, title closer as well as the seller and seller's attorney.
Every person on title to the home as well as any co-borrowers must be present at the closing to sign mortgage documents. Your lender may require that your spouse be at the closing as well, even if he or she will not be on the Deed or Mortgage.
Each person should have photo ID, such as a driver's license. You must also have the funds for the closing. Your attorney will give you the amount in advance along with payment instructions. You must have certified funds, such as bank teller check or wire transfer. If you choose to wire transfer the funds, the transfer must be effected in advance so that the funds are in place in time for the closing. Also, be sure to verbally verify the wire instructions prior to sending. Due to fraud concerns, never wire transfer funds based on emailed wire instructions.
There are two parts to a real estate closing. The first part is closing the mortgage. This will take approximately 30 to 40 minutes. Your lender may require that the signed documents be scanned and emailed to them to review. Depending on the lender, this process could take a few minutes or an hour.
Once the documents are signed, and reviewed by the lender if required, the second part of the closing may commence. This part is closing title with the sellers.
The documents transferring ownership of the home to you will be given to your attorney and the seller will receive their sale proceeds and all other parties to the transaction (realtors, attorneys, etc.) will be paid as well. Assuming the seller documents were reviewed and approved by your attorney in advance, this part of the closing should only take a few minutes.
Preparation for your NJ Real Estate closing:
• If everyone has done their job properly, the closing should be the easiest part of the entire transaction.
• Prior to the closing you will do a final walk-through of the home to ensure that the sellers have completely moved out, that any agreed upon repairs have been completed, and that the home is in ‘broom clean’ condition. If there are any problems at the walk-through, call your attorney right away. This will give him/her a chance to have the issues addressed before everyone arrives for the closing.
• Also prior to closing you will have to go to your bank to arrange for the funds for the closing. You will need to arrange either a wire transfer or a teller check. Your attorney will give you the amount needed as well as the wire or check instructions as far in advance of closing as possible. This is usually the day before closing, depending upon when the mortgage lender provides the settlement figures. Always call to verify the wire transfer instructions prior to sending.
• Be sure to have home insurance (hazard insurance) arranged and effective as of the day of closing.
• All buyers and their spouses must attend the closing unless told otherwise, and photo identification is required.
• The first part of the closing is the closing of the buyer’s mortgage. As the mortgage documents are highly standardized, and non-negotiable, the buyer is not expected to carefully read the documents at the closing. The attorney will provide a brief description of each document, along with its legal ramifications, as each document is presented for signature.
• The second part of the closing is the closing of title. The seller’s attorney will provide a Deed which transfers ownership of the home to the buyers, along with other necessary documents. The buyers will get keys to the home and the sellers will receive the funds due to them.
• Once the closing is concluded, the home is yours. You will receive keys at the closing and you can start moving in right away.
Please call or visit my website for more information about legal representation for your NJ real estate purchase.