Anatomy of a Closing transaction

 

 

 

1.         Final acceptance of offer by buyer and seller

 

2.         Signed purchase agreements delivered to both buyer and seller

 

3.         Real estate office notified that property is sold

 

4.         Sold sign put on the property

 

5.            Completion of all papers necessary to be sent to closing departments and title com­pany

 

6.            Mortgage payoff notice sent to lender

 

7.         Home retracted from computer and marked sold

 

8.         Loan application made by buyers; fees collected for appraisal and credit report

 

9.         Earnest money deposited by listing company

 

10.       Lender for buyer requests verification and credit report on buyer and also orders appraisal and title policy

 

11.       Past drawings necessary

 

12.            Mortgage company receives credit report and appraisal; documents reviewed for ev­idence of clear title; final application signed by buyer; loan file sent to the under­writer for his or her review

 

13.       All payoffs on loans against the property ordered; fee owner contacted if seller has contract for deed; seller contacted to settle any title problems

 

14.       Loan file of buyer either approved, suspended for needed information, or rejected outright

 

15.       Closing department for seller receives all figures for payoffs against property; pre­pares documents; gets all tax information; assessments verified

 

16.       Loan approved; selling agent notified; buyers notified

 

17.       Closing department sets closing date; all parties notified by mail

 

18.       Loan package ordered from lender

 

19.       Closing documents forwarded to title company

 

20.       Final search done; final figures entered on closing statement

 

21.            Lockbox and any highlight information on home retrieved

 

22.       Closing day! Mortgage documents and sellers documents signed; funds collected and dispersed

 

23.       Package prepared for lender, recording, accounting, and title insurance

 

24.            Lender's servicing department issues loan payment book.

 

25.       File documents with county; issue final title insurance policy.