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Once you find your needle in the real estate haystack, it can be easy to overlook the closing process as you’re eager to move in and make your house a home. Don’t make this mistake. Whether you’re a first-time home buyer or a seasoned real estate market veteran, make sure you show up for closing day prepared to take home the keys. Here are five steps to a successful closing day.
A Guide to a Smooth Real Estate Closing
What Information Do You Need to Bring to a Real Estate Closing?
The fun thing about closings is that no two are exactly the same. While we try to ensure as smooth a process as possible, unforeseen circumstances can arise. Generally, if you’re a buyer, you should bring a valid ID, and in some cases, a checkbook can be helpful to cover any unforeseen costs. However, most closing payments today are made through wire transfers for security reasons, so check with your closing agent in advance about payment options.
Additionally, it’s useful to bring digital or printed receipts for any prepaid closing costs, like your homeowner’s insurance premium. Although title companies may overlook prepaid expenses and include them on the settlement statement, presenting proof of payment can help correct this.
If you’re selling, you generally need an ID and may want to bring receipts for any inspection-related repairs, though these are typically sent in advance. Transfer stamps are also required if they apply to your city—confirm beforehand who is responsible for obtaining these.
What Are the Final Measures You Need to Take in the Days Leading Up to Closing?
First and foremost, as a buyer, make sure you have a "clear to close" from your lender. Without this, the closing will not proceed. Also, arrange a walk-through of the property as close as possible to the closing date. Issues can arise, like damages or uncompleted repairs, so it’s important to verify the condition of the property to ensure everything is as agreed.
Sellers have a bit less on their plate but should confirm that utilities are transferred to the buyer’s name after closing. Our office will handle loan payoffs, if needed, and clear title exceptions for you.
Do You Need an ID?
Yes, and many title companies are now using digital ID verification options. Some might ask you to verify your identity using an app or online service before the closing, so check with your closing agent to see if digital verification applies in addition to bringing a physical ID.
What Documents Are Signed During a Closing?
If financing is involved, buyers will sign all necessary loan documents, including the mortgage, note, and various disclosures. Sellers sign documents that convey the property to the buyer, such as the deed (for real estate transfer), a bill of sale (for personal property), and an affidavit of title (confirming the title’s status). Both parties will also sign the settlement statement and other title documents. In cash transactions, only these conveyance documents (and no loan documents) are typically signed.
What Mistakes Can Prevent a Closing from Happening?
The most common mistake is an incomplete repair. If an issue arises during the final walk-through, it needs to be addressed right away to avoid delays. Another common issue is miscommunication about document requirements, such as the need for a transfer stamp. To prevent such issues, make sure all parties are well-prepared and organized.
Be especially aware of cybersecurity threats during the closing process. Wire fraud is a growing risk in real estate transactions. Avoid sharing sensitive information like wire instructions over email, and always confirm wire instructions directly with your closing agent via a known phone number.
Closing day should be an exciting time for home buyers! Coming into the process with an understanding of what’s expected and preparing each step will greatly benefit all parties involved. Our experienced attorneys can guide you through the entire process. Contact us today to schedule your appointment.
About Anselmo & Wojcicki, LLP
Anselmo & Wojcicki, LLP is a multi-disciplinary law practice based in Schaumburg, Illinois, specializing in real estate, estate planning, tax planning, business formation, and the sale and purchase of businesses. Our commitment to our clients and our values set us apart from the crowd. Our team of legal specialists has a wealth of experience and expertise to help you meet your legal needs. We are dedicated to providing quality service and building lasting relationships with our clients.
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