We are continuing to celebrate National Homeownership Month which is a time to celebrate the benefits that homeownership brings to families and communities. In honor of National Homeownership Month, we have curated a list of our most popular homeownership resources for new homebuyers. Next up is our Closing Process Overview.
When you are preparing to buy a home, there are many steps in the process for the Buyer, REALTOR, mortgage company, and title company. We break down the common steps for each below:
Buyer and Realtor
- Buyer or buyer’s agent delivers signed contract, option fee and earnest money to title company
- Buyer or buyer’s agent provides copy of contract to lender to proceed with loan application
- Order inspections (general and pest, etc.)
- Buyer selects home warranty and obtains homeowner’s insurance
- Buyer brings I.D. and “good funds” to closing (wire or cashier’s check)
Mortgage Company
- Verify assets, liabilities, income/job stability and credit history
- Order, receive and review appraisal
- Collect and submit requirements to underwriter
- Underwriting approval
- Order flood certificate
- Prepare and deliver loan documents to title company for closing
- Review final signed documents sent from title company
and authorize funding
Title Company
- Closer receipts contract, option fee and earnest money
- Order title work and tax certificate
- Abstractor searches and examines title and issues title commitment
- Closer reviews title commitment and sends to lender, buyer, buyer’s agent for review and acceptance
- Title company receives closing disclosure/closing instructions from lender and forwards to all parties
- Closing
- Title company sends signed documents to lender for final approval
- Funding: All money is distributed (which includes seller proceeds, REALTOR® commissions and loan payoffs)
- Buyer collects keys to property
To download the Closing Process Flowchart resource, click here. To view other Home Buying Resources, visit the Resources page on our website.