Congratulations, you are in the home stretch and closing is imminent.
There are five activities that will occur as we approach closing. The final walk though, signing with lender, signing with escrow, the actual closing and lastly possession (or when you get the keys). Most likely some or all of these activities will occur on different days, in rare situations these events can all occur on the same day. Let’s review each step individually.
The final walk through is not a reason to hold up signing the closing paperwork. It is possible the seller may still be moving and the buyer should not expect the home to be move-in ready at the final walk-through. The seller is usually asked to have the home clean at closing, however there is no contractual obligation that the home be cleaned prior to move-in so the buyer may want to either plan a cleaning party or hire a professional cleaning company prior to move-in. (The seller is typically contractual obligated to remove trash, debris and rubbish.)
After your loan is approved by underwriting, your lender will draw up your final loan documents. This is like a summary of your loan, detailing borrowed amount, rates, payments and so forth. You have three business days to review this information, this window is called TRID. After you receive these documents, your lender will have you sign for receipt, and when the three day TRID period is up your lender will release loan documents to escrow.
The signing will occur once the buyer’s lender has sent the loan documents to the escrow agent. The industry slang for this process is, “[loan] docs are in”. Once the loan docs are received by Escrow everyone breathes a little bit easier. This process signifies that the major hurdles to closing are now in the past. In some situations the seller can sign closing docs before the lender has the buyer’s loan documents ready. Once the escrow or closing agent receives the loan documents they will call the parties to sign. For tips on the signing process, check out the 10 Tips for A Successful Signing.Your real estate broker will not be at the appointment and you will not receive keys at this time.
Closing is defined as when the County records the sale and the seller’s proceeds (the money) is made available to the seller. Because this event is tied to the County, this activity can only happen when the courts are open. Closing can only happen on a business day and usually it is late afternoon before the County records the sale. Once the transfer of real property has been recorded, the escrow agent will call all parties and let them know that the sale has funded and recorded and with that news the buyer is now the official property owner.
The moment we’ve all been waiting for, the delivery of keys. If possession is the same day of closing, the keys may be made available either as soon as the County records the sale or it may be as late as 9:00 p.m. if the seller needs the time to move out. Ifpossession is a few days after closing, your real estate broker will guide you on when you are entitled to the keys.