In Part 1, we’ve learned that the closing process is the final stage in the real estate transaction. It is when the homebuyer receives the key to their new home and the home seller gets paid for the sale of their property.

We also talked about the typical closing period for both mortgage-financed home acquisitions and all-cash transactions. Now, we’re going to dive deeper into the closing process and the role of a title service company in a seamless home closing.

Who is present at the closing?

Closing on a house is frequently done in phases and on various days. Although not necessary for every party to be present, the following parties frequently are:

• The closing agent who may employed by either the title business or the lender
• The lawyer who may be working for you or the lender. Tip: Hiring a real estate attorney on your own might be a better idea since he/she will only represent your interest.
• Representative of the title company who certifies the property's ownership in writing
• The home seller of the house and/or their real estate agent as representative
• The home seller and/or their real estate agent
• The property broker
• The lender

The settlement meeting is facilitated by the closing agent, who also ensures that all paperwork is signed, and documented and that escrow and closing costs are paid promptly.

How Much Are Closing Costs?

The fees you have to pay before officially owning a home, apartment, or townhouse are known as closing costs. Closing fees should be between 2 and 5 percent of the mortgage amount. According to CoreLogic, the national average for closing expenses in 2021 was $6,905 with transfer taxes included. Washington, D.C. according to the same survey, Missouri had the lowest average closing costs at $2,061, while had the highest average closing costs at $29,888.

Depending on the purchase price of the property and the financing arrangement, closing fees might vary, but generally speaking, they consist of:

• Appraisal fee
• Credit report fee
• Origination fee
• Recording fee
• Title search fee
• Transfer taxes
• Underwriting fee

On closing day, you may have to pay additional fees for an attorney, a notary, and any county or local taxes or fees that certain jurisdictions impose on real estate transactions.

How Important Is The Role Of A Title Service Company In Closing?

From signing the original contract to signing the closing documents, there are numerous processes involved. Many of these actions are quite obvious, such as signing off on negotiations to the terms of the contract as either side, having an inspection of your home done if you are the seller, or submitting financial paperwork to your loan officer if you are the buyer. However, a lot of these actions are less obvious but just as crucial. Many of these can be completed by a title company, including:

Disbursement Of Funds: Following completion of the transaction and signing of all paperwork, the title firm will distribute the money by the buyer, seller, and lender's instructions. This entails settling any unpaid liens or debts on the property and giving the rightful recipients of the leftover money.

Escrow Services: Title companies frequently serve as impartial intermediaries during the closing process, keeping crucial documents and earnest money deposits in escrow until all terms of the sale are satisfied. This guarantees the safe and equitable handling of money and paperwork.

Title Search: The main duty of the title business is to carry out a thorough title search by looking through public records to confirm the ownership history of the property. To make the title clear and marketable for transfer at closing, the title company searches for liens, defects, or encumbrances that may still exist.

Settling Title Issues: The title company attempts to remedy any title concerns found during the title search before closing. This can involve resolving other title problems, fixing inaccuracies in the property description, or collaborating with creditors to pay off outstanding liens. Presenting a clear title is the aim of the title business.

There are a few choices accessible when it comes to choosing a title firm for a dry closing. While some purchasers prefer to select their own title company, others prefer to go with one that is recommended by their lender. It's critical to conduct due diligence and select a respectable title company with an established track record of accomplishments.

Nonetheless, a title company plays a crucial role in the safety of your property and ease of closing, so be sure to take the time to choose one.

Looking for a reliable title service company in Indiana?

If yes, then don't look further! At IndyLegal, our goal is to help home buyers and sellers, banks and lenders, builders, developers, real estate brokers and agents, and more find the best title insurance and services.

We also offer escrow services, settlement services, and investor services.

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