What do I need to bring to closing?
Photo identification!! Your signature will be notarized on various title and/or loan documents, which require you to bring a valid, state-issued photo identification, such as a driver’s license, passport or military ID to the closing. Everyone signing documents MUST bring photo identification. Your loan officer or escrow officer will advise you of any transaction specific items required to bring to closing.
When will I see a Final HUD-1 Settlement Statement or Closing Disclosure?
When will Buyer/Borrowers know the amount needed for settlement, and when will the Seller know the proceeds to expect at settlement?
The HUD-1 Settlement Statement is used for cash transactions, home equity lines of credit (HELOC's), reverse mortgages, mortgages secured by mobile homes or by a dwelling that is not attached to real property (i.e., land) and loans by made persons who are not considered "creditors," because they make five or fewer mortgages in a year. Insight Title Company can prepare and send to you a Final HUD-1 Settlement Statement as soon as we have received all of the financial information required, such as a final payoff for any loans/mortgages against the property or for any judgments/liens against the Seller or Buyer, real estate tax information, Realtor Commissions, Homeowners Association or Condominium Association transfer and billing information, and the date of settlement. We input these figures into the HUD-1 and pro-rate rents, fees and taxes through the date of settlement to calculate the Buyer and Seller's final closing figures. The sooner we receive the financial data, the sooner we can provide the Settlement Statements.
As of October 3, 2015, for most transactions involving a new closed-end loan, the HUD-1 Settlement Statement will no longer be used. Instead, a LOAN ESTIMATE form will be provided to the borrower no later than the third business day after the submission of a loan application. The borrowers CLOSING DISCLOSURE, which is a combination of the HUD-1 and Truth-in-Lending forms, will be provided to consumers at least three business days before consumation of the loan. The Closing Disclosure will show the Buyer and Seller's final closing figures.
For Sellers, we can typically have a proceeds figure available as soon as the loan/lien payoff, HOA/Condo information, commission, and taxes are known. For transactions involving Buyer financing, however, Seller’s figures will not be considered FINAL until the Buyer’s lender approves the Closing Disclosure or HUD-1 Settlement Statement.
What types of funds are acceptable for closing?
RESPA (Real Estate Settlement Practices Act) and our title insurance underwriters require that we have GOOD FUNDS at the time of closing. “Good funds” is defined as deposited and available for disbursement on the day of settlement. Therefore, we strongly recommend all funds should be provided to Insight Title Company in the form of a bank wire, if possible. We are NOT ABLE TO ACCEPT ACH CREDITS, CASH, PRESONAL CHECKS OR CREDIT CARDS. If a wire transfer is impossible, we will accept a cashier’s check made payable to Insight Title Company, but those funds must be deposited into our account at least one day prior to closing so that they can be posted and credited to the escrow account in time for closing. Your escrow officer will provide you with wire instructions.
When do I need to transfer funds to Insight Title for the closing?
Our title insurance underwriters require that we have GOOD FUNDS at the time of closing. Therefore, in order to ensure that the funds are deposited into our account and available at the time of closing, we recommend that you initiate the wire into our account by the afternoon prior to your closing. If you will be using a Cashier’s Check, the check must be provided to the closing office by 1:00 p.m. on the day prior to closing so that the funds can be deposited immediately and available the following day for disbursement.
When will the Seller get proceeds?
Once the Lender has approved the HUD-1, the closing or settlement has been completed, the HUD-1and all lender documents, transfer documents, and affidavits have been signed and notarized, the Lender has provided their funding authorization (if applicable), and Insight Title Company has received ALL FUNDS necessary for settlement, we are in a position to disburse seller proceeds, loan payoffs, commission checks, etc. at this point.
How are taxes and HOA/Condo Dues handled at settlement?
Real Estate Taxes and Homeowners Association/Condominium Association dues are pro-rated on the HUD-1 Settlement Statement or Closing Disclosure as of the day of settlement. Any fees, dues, or taxes paid by the seller that cover a period in the future will be reimbursed to the seller by the buyer. Any fees, dues, or taxes paid or to be paid by the buyer for a period of time prior to settlement will be reimbursed to the buyer by the seller. Tax periods and tax due dates vary between and among jurisdictions, so please inquire with your settlement office for specific dates and figures.
I am refinancing my house and getting cash out–when can I expect to receive funds?
If you are refinancing your principal residence, you must wait the three day mandatory recission period following closing (including Saturday, not including Sunday or Holidays) before the funds will be available for disbursement. This three day period enables you to rescind or cancel the transaction. Following the rescission period, the lender will fund your loan. Once Insight Title Company receives the lender’s funds, we will disburse the file, payoff your existing loan, and send you your funds.
How are taxes, rents and HOA/Condo Dues handled at settlement?
Real Estate Taxes and Homeowners Association/Condominium Association dues are pro-rated on the HUD-1 or Closing Disclosure as of the day of settlement. Any fees, dues, or taxes paid by the seller that cover a period in the future will be reimbursed to the seller by the buyer. Any fees, dues, or taxes paid or to be paid by the buyer for a period of time prior to settlement will be reimbursed to the buyer by the seller. Tax periods and tax due dates vary between and among jurisdictions, so please inquire with your settlement office for specific numbers.
When will my deed be recorded? When will I receive my final recorded deed and title policy?
Following settlement and the receipt of all funds, Insight Title Company immediately sends to the the Deed, Mortgage, if any, and any other associated documents to the appropriate county examiner for updating and walk-thru recording. Documents are typically recorded within 1-2 business days, depending on the county procedure. After the documents are recorded, the county will return them to Insight Title Company. This can take 2-4 weeks, again, depending on the county. Upon receipt of the final documents, Insight Title Company will prepare the final title policies. Original recorded deeds and owner's policies are then sent to you via certified mail, while recorded mortgages and loan policies are sent to the lender.