The closing is where all the final paperwork is signed and when possession of the property changes hands. This is normally done at a title company here in the Oklahoma City area. The days leading to closing can be stressful as all the final requirements, inspections and paperwork must be completed. By managing deadlines and helping you work through the issues, our goal is to make the closing as stress free as possible.
When you purchase a home, you want to make sure you have a clear title with no liens or past clouds on the title. This is done by a title and abstract company.
An abstract of title is a condensed history of title to a particular parcel of real estate that summarizes the ownership history of the property. In Oklahoma, that is normally from the beginnings of Indian Territory, through statehood and up to the
current sale. This is performed by an abstract company. Their staff and attorneys research the property and tax records and prepare the updated abstract at the time of sale. If the abstract was updated from the previous purchase, the work is much less than if the abstract is lost or years out of date. Abstract companies charge based on the value of the property and the amount of time since the last
Once the abstract is updated, the title company, at the buyer’s request, will issue title insurance on the property. This policy indemnifies the insured against financial loss from the defects in title of the property. If problems arise from defects in the title, the insurance company will either fix the problems of title or compensate the property owner for losses up to the value of the policy.
I highly recommend title insurance for all of my buyers and nearly all mortgage companies require buyers to purchase title insurance to protect the mortgage company in case of title problems.
Homeowners’ insurance is a necessity, something every property should have. If you have a mortgage, your lender will require coverage — and if your home is mortgage-free than you should have coverage anyway.
Homeowners’ insurance generally comes in standardized packages. For instance, the most basic form, HO-1, offers protections against such perils as fire, theft, and certain types of liability. HO-2 is more comprehensive and includes protection against damage from broken pipes, the weight of ice and snow, and broken hot water heaters. HO-3 gives more protection still: It generally includes just about everything and excludes only earth-shaking events such as earthquakes, floods, nuclear accidents, and wars.
To determine which policy is best for you, and to find out about other policies, make a list of valued possessions and the types of coverage you’d generally like to have — and then sit down with an insurance broker to review what’s included (and excluded) from each policy form and the other forms of coverage which may be available. You may find all the coverage you want in a general form, or you may determine that you need special coverage at extra cost.
I can recommend several local insurance brokers who can help you determine the best coverage for the least cost. Insurance is available in Oklahoma from the majors companies such as Allstate, Farmers, and State Farm, plus a variety of smaller specialty insurance companies.
Final Walk Through
Normally the day before or sometimes the morning before, the buyer has the right to do a final walk-through of the property to ensure all the repairs have been completed and the property was left in the expected condition. This is typically just a formality, but problems can arise at the last moment due to incomplete repairs. I will participate in your final walk-through and if problems arise, I am there to help you deal with them.
Normally a day or so before the close you will receive a HUD-1 statement from your lender. This federally required document outlines all the details about your mortgage including the interest rate, all your closing costs, insurance, taxes, and your monthly payment. You can compare this to the good faith estimate you received earlier from your lender – typically those are very close.
Finally – THE CLOSE!
Once the inspections are complete, the title work is done and the sellers have moved out, you are ready for the final step – the close. Typically both the buyer and the seller show up at the title company, where the paperwork is ready for signatures. The lender will provide the title company with all the documents they require you to sign. Both parties will sign the respective documents, usually privately, and when the financing is completed, you get to walk away with the keys to your new home!
Sometimes all parties are not able to attend the closing at the same time. In these cases the title company will perform a “dry closing” whereby each party signs at a different time. The transaction is only finalized when the funding is completed, which could be a day or more later.
- Mortgage Contract
- Transfer Deed
- Purchase Agreement
- Addendums to contract
- Truth in Lending statement
- Title insurance policy
- HUD-1 Settlement statement