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| 8. Closing |
- Closing is not to be confused with Recording. Closing occurs
when your lender is ready to loan the money while adhering to the dates
specified in the Purchase & Sale Agreement. A few days before closing, I
will make an
appointment with the title company for you to close. An
appointment later in the afternoon gives everyone more time to make sure
they have correct documents. The lender sends all the necessary loan
documents to the title company. The seller has an appointment to close
and you have an appointment to close. This can even be on different days
and it's frequently done in different locations. I do not need to be
with you when you close, although I try. Once you sign all the
loan documents at closing, the lender sends the money to the title
company, and then the title company records the sale at the recorders
office. This is usually the next business day after closing. If you close on a
Friday, the transaction records on Monday (unless it's a holiday). You
cannot move into your new home until recording. Recording is the date
listed in the contract, so in order to comply with the contract we need
to make sure and close at least one business day before recording.
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- We are seeing hiccups in getting a cashier's check or
wire transfer of funds for closing, especially if the sums are very
large. Please call your bank, or whoever you will get the cashier's
check from, and walk them through exactly what you plan to do. There are
surprise waiting periods for certain transfers. Like what, you ask?
Well, we heard of buyers that planned to transfer $100K from an
investment account into their bank account a couple days before closing,
but when they went to do it, they found out there was a $10K per day
limit. Oops.
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- Important note about utilities . . . call the
appropriate utility at least two days before recording and set up an
account to get it transferred into your name.
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