Timeline of the Process
Whether this is your refinance or you are a real estate veteran, the closing process can sometimes appear to be mystifying. This thumbnail review should help you to understand what goes on before, during and after the day that you sit down and sign all the formal documents at Key Title.
Purpose of A Closing/Settlement
As your closing agent, Key Title acts as a third party to ensure that: (1) all of the Lender’s Instructions and Conditions are followed, (2) all costs incident to the refinance which include the payoff of the prior loan, lender fees, escrows for taxes and insurance, real estate tax payments, homeowners insurance payments, title insurance costs are collected by Key Title which are to be disbursed after closing, (3) the title to the property is clear and confirm that a title policy can be issued (4) new mortgage/deed of trust is recorded in the land records in accordance with the State/District laws and the Lender’s instructions, and (5) disburse all of the closing funds to the appropriate parties in accordance with the Closing Disclosure and the Lender’s instructions.
Prior to the Closing Day
Upon receipt of the refinance request from the Lender, Key Title contacts the Borrower to obtain information essential to closing, orders loan payoffs and orders a title search. The title search is performed in the courthouse land records where the property is situated to determine what liens, mortgages, judgments and other matters affect the property. Key Title reviews this information and Title takes those steps necessary to confirm a Lender’s Title Policy can be issued insuring good title for the Lender under the new mortgage/deed of trust. The title information, annual tax information including the status of payment for the real estate taxes is communicated to the lender. When the lender provides closing instructions, a Closing Disclosure Statement is prepared and approved by the Lender.
On Closing Day
On the day of closing, the Borrower will meet with a Key Title settlement agent to sign the Closing Disclosure Statement, loan documents and settlement documents. Any funds due from the Borrower will be given to the settlement agent at that time (in the form of a cashiers or bank check) unless the Borrower has previously wired the funds to Key Title. After all documents are signed and the Borrower’s funds received, the transaction is closed.
After the transaction is closed, Key Title will have a final title check done on the property and record the requisite legal documents such as the mortgage/deed of trust in the appropriate lands records.
Key Title will disburse the funds to the appropriate parties within the legal time limits. Key Title must comply with the federal rules and regulations, the district/state laws as well as the Lender’s instructions while disbursing the funds.