You’re excited about the purchase of a new home. Congratulations! To make it happen, you’ll need the help of an experienced closing agent at a reputable title company in the critical step of funding the loan and tying up loose ends. The title company will oversee the closing process and make sure everything happens in the right order at the right time. The following are a few frequently asked questions.
What exactly is “funds disbursement”?
Receiving and disbursing funds for the sale is a key component of the settlement and closing process. The closing agent at a title company will work with the lender and/or you, the buyer, to facilitate the funds disbursement process. The title company where you’ll be closing will need a few things before they can assist you in closing on your house.
What does the title company need in order to close?
A title company must have approval from the lender to get to closing. The title company also needs lenders’ funds and funds from you, if applicable. If you are using a lender, your lender will provide your final cash to close amount. If it is a cash purchase, the title company will work with you prior to closing regarding the funds needed. These funds will go into an escrow account overseen by the title company.
In short, the title company must meet all of the requirements to disburse funds before moving forward on the real estate transaction.
What does the title company pay with these funds?
Depending on the specifics of your transaction, their obligations include paying off your previous mortgage, making property tax payments and homeowners’ insurance, and paying you, if applicable.
It’s almost closing day! I have contractors ready to go and I need my keys.
Things may not be ready just yet. Several conditions need to be met before your keys are in your hands.
- The title company will need the lender’s approval, and every lender has a different process and specific documents to be reviewed.
- Similarly, lenders have different processes for funding. Some will wire the money ahead of time, and others will not release the funds until they have finished their review and approval process.
- The lender must provide a Closing Disclosure to you at least three days prior to closing. If you or your lender makes significant changes between the time the form is given to you and the closing, you must be provided a new form and an additional three-business-day waiting period.
- Buyer’s funds must also be in the title company’s account before anything can be released. Make sure you have wired your portion of the funding ahead of time or have a cashier’s check with you at closing.
- Be mindful of closing times. If it’s imperative the funding closes the same day, make sure to schedule your meeting at the title company in the morning to ensure there is plenty of time to make it happen.
Buying a home is exciting—but it can also feel complicated. At Attorney’s Title Group, our experienced closing and title team will help you through every step of the closing process. Learn more about our services here.