What to Expect at Your Closing:
Please allow adequate time for your closing. A normal real estate closing when a loan is involved will take about an hour.
You will need two forms of photo I.D., preferably a driver’s license or passport. The Notary will need to see your identification in order to notarize documents. Due to the overwhelming amount of fraudulent cashier’s checks circulating in Florida, we require all funds to close in the form of a wire transfer. Our wire instructions will be sent out with every Preliminary HUD and are available upon request.
We will make every possible effort to complete your Settlement Statement at least 24 hours before the closing so that all parties have a chance to review their charges. However, we cannot complete the Buyer’s figures unless we have been given instructions and approval by the lender.
We can normally complete the Seller’s Settlement Statement well in advance of the closing; call your closer if you need the figures sooner than the day before closing.
The following is a list of the most common documents that the Seller will be required to sign at closing:
- The Settlement Statement (also called “HUD – 1”): Itemizes the fees paid by both the Buyer and the Seller and gives the bottom line figure due to/from each party.
- Closing Affidavit : A statement certifying that the Seller is the true and lawful owner of the property, that there are no liens against the property other than those disclosed, and that there are no other matters which would adversely affect title to the property. This affidavit also includes acknowledgment by the Seller that taxes have been prorated between the parties using the best available information. If when the actual tax bills are released, the amount differs, then there will be a recalculation of the tax proration.
- Compliance Agreement: An agreement to be executed by both parties regarding clerical errors and any additional requirements to be met after closing.
- Warranty Deed: The document which is recorded in the Public Records and transfers legal ownership of the property.
- 1099-S Exemption Form: States that the criteria exempting the requirement for reporting to the IRS have been met; if this is not the case, a 1099-S form will be issued. Please note: each transaction is different, and as such, additional documentation may be required.
The following is a list of documents generated by the Title Company that the Buyer will generally be required to sign.
- The Settlement Statement (also called, “HUD – 1”): Itemizes the fees paid by both the Buyer and the Seller and gives the bottom line figure due to each party.
- Compliance Agreement:: An agreement to be executed by both parties regarding clerical errors and any additional requirements to be met after closing.
Each Lender will have different documents for the Buyer to sign; however, almost all residential loan packages will contain the following:
- Note: The promise of the Borrower to repay the loan, and the basic terms of the repayment.
- Mortgage: The document which is recorded in the Public Records granting the lender a lien on the property to secure the loan. This document gives the lender the right to foreclose if the Borrower defaults on the Note.
- Truth-In-Lending Statement: A required disclosure to the Borrower stating the annual percentage rate (this rate contains the fees charged by the lender and adds them to the note rate) and the total cost of the loan over its life.
- Anti-Coercion Statement: An acknowledgment from the Borrower that the lender did not require the homeowner’s insurance to be purchased from a particular company.
- IRS Forms W-9 and 4506: The W-9 enables the lender to report the interest paid annually to the IRS; the 4506 is used in the event of an audit by HUD and allows the lender to obtain copies of tax returns directly from the IRS.
- Payment Letter: Gives the amount and due date of the first payment.
- RESPA Servicing Disclosure: Discloses to the Borrower that the lender has the right to transfer the loan on the secondary market.
- HUD – 1 Addendum: A statement that the HUD – 1 Settlement Statement is a true, accurate, and complete statement of the transaction.
- Loan Application: A typed copy of the Borrower’s Loan Application
- Correction Agreement: An agreement by the Borrower to correct clerical or typographical errors.