What to Expect at Signing
As an almost new homeowner, you have withstood plenty to get to this point.
You made it through all the tours, offers, negotiations, and inspections…
Now you are almost to the finish line!
Just before the keys are handed over, two final steps need to take place: signing and closing.
In this post, we will break down what to expect at signing.
WHAT IS THE SIGNING?
The term “signing” gives a pretty clear clue about what you will be doing during this step…signing a lot of paperwork.
There is an ample amount of documentation that goes into loans and legally transferring property.
That is why, before the home closes, you will spend about an hour or more going over all the required documentation with the title company and will give your approval of the documents with your signature.
WHAT KIND OF DOCUMENTS AM I SIGNING?
There are three categories of documents that you will be signing: all documents related to the loan, all documents related to the transfer of real estate (homeownership documents), and documents stating the “cost reconciliation” (aka the fees you need to pay).
LOAN DOCUMENTS
The Note: Evidence of debt to the lender and legal agreement to pay the mortgage. It also includes loan information.
The Deed of Trust: Proof of that home as collateral for the loan. It is a document used to secure the home if the debt is not repaid.
Loan Application: Requires final signatures on all details you had provided when applying and is a confirmation of current financial standing (compared to original filing).
TRANSFER OF REAL ESTATE DOCUMENTS
The Deed: Transfers property from seller to buyer. The deed must be signed and then this proof allows the county to record the transfer.
The Affidavit of Title or Seller’s Affidavit: A document that proves the seller was indeed the owner and lists any title defects.
Transfer tax declarations: Some states require a transfer tax and this document will list the amount that is required. In Oregon, only Washington County requires a transfer tax and the tax comes out to one dollar per thousand dollars for the purchase price.
Bill of Sale: Transfers all personal property that was agreed upon in your contract to be accepted with the home.
Certificate of occupancy: Typically this document is required for newly built homes to show that the home is up to code.
COST RECONCILIATION DOCUMENTS
Escrow Disclosure Statement: Shows specific charges you pay each month to the escrow account.
Loan estimate and closing disclosure: The estimate of the costs that will be paid by you for taxes, HOA feeds, etc. This document should be provided three days before signing. These numbers may also be referred to as the “cash to close” amount.
HOW TO PREPARE BEFORE SIGNING
It’s required that you be given the Closing Statements three days before signing. This is an excellent opportunity to review the numbers and make sure that everything is correct. If there are any discrepancies you can talk to your agent and the title company. Your agent cannot do anything to fix this, as this is the title company’s role, but they can support you in advocating for any mistakes made.
If you would like expert legal support when going over documents you may want to hire a real estate attorney. They can help you by going over the documents in full and make sure that everything is correct. Legally, a real estate agent cannot help with the interpretation of legal documents.
WHAT IS NEXT…
After singing, all the rest of the work will be done by the title company and mortgage broker during closing…keep an eye out for that blog post!
Although the deal isn’t completed yet at this point, you can still give yourself a pat on the back for making it through all that paperwork!
If you or anyone you know needs help in finding or selling a home feel free to give us a call at (503) 583-2581 or email us at Daniel.roberts@pacificgrand.com.