Closing Process Overview

Closing Process Overview

We are continuing to celebrate National Homeownership Month which is a time to celebrate the benefits that homeownership brings to families and communities. In honor of National Homeownership Month, we have curated a list of our most popular homeownership resources for new homebuyers. Next up is our Closing Process Overview.

When you are preparing to buy a home, there are many steps in the process for the Buyer, REALTOR, mortgage company, and title company. We break down the common steps for each below:

Buyer and Realtor

  • Buyer or buyer’s agent delivers signed contract, option fee and earnest money to title company
  • Buyer or buyer’s agent provides copy of contract to lender to proceed with loan application
  • Order inspections (general and pest, etc.)
  • Buyer selects home warranty and obtains homeowner’s insurance
  • Buyer brings I.D. and “good funds” to closing (wire or cashier’s check)

Mortgage Company

  • Verify assets, liabilities, income/job stability and credit history
  • Order, receive and review appraisal
  • Collect and submit requirements to underwriter
  • Underwriting approval
  • Order flood certificate
  • Prepare and deliver loan documents to title company for closing
  • Review final signed documents sent from title company
    and authorize funding

Title Company

  • Closer receipts contract, option fee and earnest money
  • Order title work and tax certificate
  • Abstractor searches and examines title and issues title commitment
  • Closer reviews title commitment and sends to lender, buyer, buyer’s agent for review and acceptance
  • Title company receives closing disclosure/closing instructions from lender and forwards to all parties
  • Closing
  • Title company sends signed documents to lender for final approval
  • Funding: All money is distributed (which includes seller proceeds, REALTOR® commissions and loan payoffs)
  • Buyer collects keys to property

To download the Closing Process Flowchart resource, click here. To view other Home Buying Resources, visit the Resources page on our website.

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