Denver CO First Time Home Buyer Series – The Closing Table (Part 10)

I hear the cheering already as we come to the close of this series on Denver CO First Time Home Buyers. Why? Because we are at the closing table and the end (or beginning) is in sight. You are excited as am I, because another successful first time home buying experience is culminating. You are happy!

You received the HUD statement prior to closing which breaks down the financials of the transaction. You have the number (if any) which you need to bring to closing. Plus you should have already seen the truth in lending statement from the lender.

If an amount is due from you at closing bring a cashier’s check from your bank to closing which is made payable to either yourself or the title company. The HUD has the amount and your Realtor® will clarify that with you. Take the time at least a week prior to closing to contact your bank and ensure that getting the required funds in the form of a cashier’s check will not be a problem. You don’t want any hiccups this late in the game.

Remember to bring two forms of identification to closing with you - A valid driver’s license and one additional form of identification. A social security card or passport will suffice for a second form of ID. Honestly you will probably not need the second form of identification, but bring it to be safe. Every once in a while the funding agent for the lender will require two forms of ID to release funds and it is far better to have them with you if needed.

The closing will consist of about an inch of documentation for you to sign. Some of them will be loan documents and some will transfer the ownership of the property into your name. The title company will explain each document that you are signing. This process is called closing. Expect it to take two hours. The shortest time I have seen it 31 minutes but an average time is about an hour and a half.

Both of buyer and seller will sign their respective documents after which the title company will be required to send a portion of those documents to the funding agent with the lender in order for funds to be released and the closing to be finalized.

Lenders have different processes at this time. Some will re-verify credit and or employment prior to releasing the funds to the title company. DO NOT incur major expenses or take on new debt prior to closing without discussing everything with your lender prior to doing it. Changes to credit ratings or debt ratios at this point can derail your purchase. Once the lender releases the funds to the title company your purchase is considered funded and they will finish up the closing.

Congratulations on purchasing your first Denver CO home.

After all this time, when do you get possession? Well that depends upon what was negotiated up front. In general when the home is occupied in Colorado the sellers will want up to three days after closing in order to vacate the home. Why? Well the sellers don’t want to move out a home until after they are certain that closing will happen. They are not certain until closing actually occurs. On vacant homes it is typical to get possession right after closing is complete.

One final note – Remember prior to closing to call the utility companies and have them switched into your name effective the closing date. The switch over of water and sewer will be taken care of by the title company.