DAY OF CLOSING

Big day has arrived and you have no clue what to expect. But put your mind at ease as it will seem like complete chaos and at the end of the day all you will have to show for it is a set of keys, a ton of documents and oh yeah a brand new home!

First and foremost (very important), by contract you are supposed to close by a certain date but this being Miami, everything is subject to change without prior notice, so don’t freak out if the closing date does change; prepare accordingly prior to closing.

What does that mean? Don’t plan a moving truck on a set date, give yourself some flexibility…..trust me on this one.

Typical closing date scenario:

Once we get the clear to close from Lender (usually a couple of days before set closing date) the actual date/time of closing will be set.

Buyer will do a final walkthrough; this is done to make sure the stuff that was on the contract is still there. This is NOT a re inspection, please remember that.

The closing agent will prepare a HUD 1 which will serve as a reconciliation of all credits/debits used in the transaction; this MUST be approved by lender.

Both Seller and Buyer (also agent) may review to see if any changes might be made (missing credits/debits) and HUD is sent to Lender for approval.

Buyer will meet with closing agent and review/execute a “Boat load” of documents (which will never be looked at again) that the lender has prepared to protect “THEIR” interest (you are just along for the ride, remember Lenders NEVER lose).

Most important documents that you will sign are;

The “Note” which is a promise to pay.

The “Mortgage” which is what you promise to have taken away if you do not pay.

The “HUD 1” which is a settlement statement of where all the dough went to.

Once you have executed all of these documents the Sellers side will come in (note the Seller DOES NOT have to be present) and present their executed documents; Bill of Sale and Warranty Deed being the most relevant.

They will also execute the HUD 1 and the closing agent will notarize it.

At this point the transaction is complete and there will be some nervous silence.

Right about here is where the Real Estate agent will attempt to add some levity to the transaction by asking “Hey when do I get paid?” or something to that effect!

BTW; same steps take place for a “Dry Closing” which just means that the lender has not funded the transaction and both sides have agreed “that’s cool”; happens all the time.