What To Expect
Working With Us
So you’ve found the home of your dreams. Congratulations on taking the first step! But if you’ve never been through it before, the rest of the home buying process may be a mystery to you. What happens between the time you sign a purchase agreement and the time you’re handed the keys to your new home? Here are a few tips that we hope will help you understand the process and what goes on behind the scenes during the countdown to closing.
- Choosing a Settlement or Escrow Agent
Your lender or agent may recommend a neutral closing agent, such as settlement company like Madison or an attorney, to handle your closing. The choice is yours. At Madison, we work diligently to build and maintain lasting relationships that will ensure our reputation with our lender and agent clients for years to come.
- Obtaining Title Insurance
Your lender will require you to purchase a title insurance policy to protect the investment on your new home. Be sure to click on the Title Insurance Tab to understand how important it is to make sure all your assets are covered by purchasing an Owner’s Title Insurance Policy.
- A Title Search
Believe it or not, title searches reveal problems on more than a third of all residential real estate transactions! By searching public records for debts, legal judgments and other homeownership issues, we give you peace of mind in your investment. Some of the items reviewed include prior deeds, mortgages, divorce decrees, court judgments, delinquent taxes, child support payments, covenants, conditions and restrictions and other types of easements.
If an issue is discovered, Madison will take care of it—typically without you even knowing about it. If the problem is not easily resolved, you will be notified.
- Preparing the Documents
During the countdown to closing, the settlement or escrow agent you have selected and/or your lender will be busy preparing all the documents you will sign at closing. Some of the documents being prepared for you to sign include:
-The Closing Disclosure: This form contains the terms and costs of your transaction. By law, your lender must provide the Closing Disclosure to you three days before your closing.
-Promissory note: This document is your promise to repay the loan (mortgage) to your lender. It includes the amount you owe, the interest rate of the mortgage loan, the dates when the payments are to be made, the length of time for repayment and the where the payments are to be sent. The note also explains the consequences of failing to make your monthly mortgage payments
-Deed of trust: This document transfers legal ownership of the property with the condition that the lender may foreclose on your home if you fail to repay your mortgage. The Deed also explains your responsibilities and rights as a borrower.
- What to Bring to Closing
Because your signature will be notarized on a number of documents, be sure to bring two forms of identification to closing, including a photo ID such as a driver’s license, passport or work badge, plus another form of ID such as an insurance card, a social security card, or a utility bill. In addition, you’ll need a cashier’s or certified check, and/or a wire transfer of funds from your bank.