This is the next post in my series explaining what a consumer looking to buy a home in the Dayton, Ohio metro area can expect from the real estate process. My last post explained what a buyer can expect to happen between an offer being accepted and the closing date. In this post, I will explain what a buyer expect from a closing, and what they must review before signing on the dotted line. Contact a real estate agent today for assistance.
Your closing date will be finalized once your lender is finished with your underwriting process and your mortgage has been approved. Once your closing date has been set, you will receive the Closing Disclosure form at least three business days prior to your closing date. Your Closing Disclosure form will outline your loan amount, your interest rate, the monthly principal and interest payment you can expect to make, whether or not your loan has a prepayment penalty, and estimated taxes and insurance. Your Closing Disclosure form will also say how much cash is required to close on the property and the total of your closing costs. Under new federal laws, lenders must provide transparency with regards to closing costs, interest rates, and the details of your loan product. It is important to look this document over very carefully and contact your lender with questions if the terms of this document are unacceptable. Remember, once you sign the documents at the closing table, you will be locked into the terms of the mortgage.
Prior to closing, your title company will contact you with information regarding how to pay any monies that you owe- i.e. your down payment, and additional closing costs. Under Ohio law, any amount over $10,000 must be paid to the title company through a wire transfer. Your title company will send you secure instructions on how to wire the money that is owed to close on the property. Any amount under $10,000 can be brought to the closing table with certified funds. If you have questions or concerns regarding the wire transfer, contact the title company directly, or ask your real estate agent who to call.
Twenty-four hours prior to your closing, a buyer has the right to perform a final walk through. This ensures that the property has remained in the same condition as it was when you last looked at it. It also ensures that the seller did not remove fixtures or appliances that were contracted to remain with the house. Final walk throughs are very important, as, if a problem exists, the buyer has the right to make the seller correct the issue before closing. If the buyer does not perform a walk through, and an issue exists, one would be forced to either let the issue go or sue the seller through the Courts in order to remedy the situation. Make sure your real estate agent knows that you wish to see the property before the closing date.
On the day of the closing, the buyer will meet with the title company representative (who is often also the closing agent). The seller may or may not be present; many sellers elect to sign necessary paperwork ahead of time. Your real estate agent should also be present, if possible. If a buyer is married, it is important that the spouse also attends closing, even if they will not appear on the title or are not on the loan. Ohio law recognizes dower rights, and if a person is legally married, the spouse must sign a document acknowledging that they are aware of the purchase. The buyer must bring a legal photo ID with them to the closing table. In most cases, your lending company will already have all other documents that are required.
Closings involve signing a lot of paperwork. Your closing agent will go over the terms of your loan with you one last time, and you will sign all paperwork, locking you into your mortgage. The documents you sign at your closing should be identical to the Closing Disclosure form you received three days prior from your lender. If you have any questions or concerns, this is the last chance to say something before you commit yourself to a loan.
After all of the paperwork is signed, you will receive the keys to your new home. The title company will record the deed with the county the home is located in, and ownership will be transferred from the seller to the buyer. The title company will also mail you the official paperwork after a few weeks time. And that will complete the process; the buyer is free to begin moving into their new Dayton area home!
Contact a Dayton realtor today for assistance. I also service Beavercreek, Centerville, Cincinnati, Clayton, Englewood, Oakwood, Fairborn, Harrison Township, Huber Heights, Kettering, Miami Township, Miamisburg, Riverside, Springboro, Trotwood, Vandalia, Washington Township, West Carrollton, and Xenia.