Once you’ve addressed and resolved all the underwriting conditions, the underwriter will issue a “clear to close.” As one would expect, that means you are ready to finalize the deal. At this point, the lender will put together the closing disclosure and provide that to the buyer. The buyer must sign it, and then, according to federal law, there is a three-day wait after the paperwork is signed. If your goal is to close by a certain date, make sure you get the closing disclosure signed at least three days before closing, so you can close on time. Then comes the closing, the moment everyone has been waiting for. The buyer, seller, Realtors®, and maybe an attorney, all sign the final paperwork. The deal is closed and the keys to the home are handed over to the buyer. The closing date is usually negotiated during the offer phase of a home sale. When making an offer, the buyer will include a prospective closing date. Depending on the seller’s circumstances, it may be acceptable or may be countered with other terms. Work with your client closely and don’t choose a closing date casually. The right date can ensure a smooth transaction and reduce closing costs, while the wrong date puts home buyers at risk of not closing on time.
Some advice and tips:
• Give yourself enough time. Don’t set a short closing date unless the client is paying cash. As you can see, there are many steps to a home purchase. It takes time for the loan process. A short closing date might predate final loan approval.
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