FAQ

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• As a Buyer, why would I need a land survey?
• What does mortgage insurance do for me?
• If the other party to the closing is being represented by another closing agent, when should I schedule my closing?
• As a buyer, when will I know how much money I need for closing, or as a seller, how much I will receive at closing?
• Can I get a copy of my appraisal at closing?
• Do I need to hire my own closing service or attorney if the other side already has one?
• Will I receive my check (seller) or keys (buyer) at closing?

As a Buyer, why would I need a land survey?

Surveys are important to locate possible encroachments that would not necessarily be visible to the eye upon inspection. Generally, a survey is a drawing of the property showing the boundaries, easements, building lines, fences and the location of structures on the property, and if the property is in a flood zone. If your home or some structure on the property was located in whole or in part over the boundary lines, in a easement, in a flood zone or violating a building set back line, in extreme examples, you may have some legal obligation to move the offending structure. At a minimum, it may affect the property values when you sell, or in some cases the encroachment may be so minimal that consequences are, as a practical matter negligible. [Back to top]

What does mortgage insurance do for me?

Although mortgage insurance does not directly benefit a buyer or a seller of a home, it does afford many buyers who otherwise could not afford a large down payment to obtain a loan. Generally, the more that you can afford to pay down and the greater your investment, the less likely you would be to allow a default in payments. Even if you allowed a default, the equity would protect the mortgage company from any financial losses upon foreclosure and resale. If you can't afford to make a large down payment of up to twenty percent, the bank will generally insure against your potential default at your expense by requiring mortgage insurance. [Back to top]

If the other party to the closing is being represented by another closing agent, when should I schedule my closing?

It is generally suggested that the seller close at the same time or after the buyer. Until the buyer closes, no money is available from which to fund the sale and disburse to the seller. Also, from a practical standpoint, documents and mortgage instructions affecting the seller may arrive with the lender's closing package. By closing the buyer side first, all required documents and instructions should have a chance to reach the seller's closing agent in time for the seller's closing. [Back to top]

As a buyer, when will I know how much money I need for closing, or as a seller, how much I will receive at closing?

If you are buying with a new loan, your lender will be able to give you "good faith estimates" of your closing costs and down payment. We, as your closing agent, can give you an exact figure once the lender has provided us with the final loan instructions and closing package. Sometimes these instructions are not provided until a day or even a few hours prior to closing. Please use your good faith estimates if we can not give you a figure in time for you to obtain a cashiers check. As a seller or as a buyer without a new loan, our office would be able to estimate the cost for you in advance of the closing, but final figures may not be available until we have accumulated information such as the insurance premium, title work, tax information, termite and pest inspection fees, surveying fees, or assumption fees (if any), etc. Once again this information may not be available until immediately prior to closing. [Back to top]

Can I get a copy of my appraisal at closing?

Generally the mortgage company does not send the closing agent a copy of the appraisal to the closing unless someone requests it. Please let your mortgage company know if you wish to have a copy of the appraisal at closing. Of course you can always request that one be given to you by the lender after closing. [Back to top]

Do I need to hire my own closing service or attorney if the other side already has one?

The answer depends on the likelihood for a dispute between the buyer and seller. If there is only one settlement agent handling a transaction, that agent cannot act in favor of one party over the other if a dispute arises. Although the agent may attempt to negotiate a resolution, the agent cannot take sides. If the agent is representing only one party to a closing, the agent can give more assistance to you in formulating the correct legal response to preserve your rights and protect your position. Consider the likelihood of a dispute dispute arising, and if one is likely, use your own representative. Keep in mind that your real estate agent's ethical responsibilities parallel those of the settlement agent, and if each side already has there own real estate agent, he or she could help resolve an issue in dispute.

Accordingly, we recognize that if both parties choose our services, our job is made easier, and we are able to correspondingly discount our fees. [Back to top]

Will I receive my check (seller) or keys (buyer) at closing?

Probably, but in some cases the mortgage company may allow documents to be signed prior to the all requirements being met. If any requirements or conditions as contained in the contract have not yet been met then the closing is not final and documents, keys and funds should not be exchanged. [Back to top]

If you have general questions about the process of closing a house or a loan, and did not find your answer here, please contact us by fax, phone or email.

You may also wish to check with our Practical Information Page