What is a closing?

A closing is the 30-60 minute meeting of buyers, sellers, real estate professionals and loan officer.  It is led by the title company’s “closer”.  In this meeting, document explanation & signing takes place in order to complete (“close”) the transaction.

At a closing,
1) The title company collects funds from the buyer (down payment and closing costs – by check) and the from buyer’s lender (loan amount – by electronic wire).  
2) Then the title company subtracts out all fees/amounts needed to pay the 3rd parties who helped make the transaction possible for their services. These third parties include: Lender, real estate professionals, appraiser, home owners insurance company, tax authorities, etc.;
3) The title company also subtracts out the amounts needed to pay off all the sellers’ mortgages & liens.
4) The title company then gives the sellers what’s left.  This amount is called the “sales proceeds”.  
5) The buyer walks out as a new homeowner with keys; the real estate professionals and sellers walk out with checks.  The sellers then go on to the closing of their new home’s purchase, using the sales proceeds check Jett Title just gave them.

After closing, the title company:
1) Overnights out all the seller’s mortgage/lien payoffs; and mails out all 3rd party fees for their services.
2) Sends the deed/mortgage documents to the county clerk’s office for official recording.
3) Mail the original deed to the buyers after the clerk mails it back to the title company. This can take 3 weeks for closing.
4) Issue a Lenders Title Insurance policy to the buyer’s lender, insuring them that their mortgage is now recorded in first position.