CLOSING TIME (FOR BUYERS)
Alright, it’s down to the wire! Contingencies are satisfied, financing is sorted, and you’ve been sent a Settlement Statement. Now, let’s talk about the details of closing.
In Montana, closing will most likely take place at the Title Company that’s been handling the transaction. They will draft a Settlement Statement that includes the price of the home, prorations and adjustments (like taxes, utilities, any concessions the seller made), charges (such as the filing fees and title company charges), Government recording and transfer charges, and other miscellaneous charges (such as sewer usage fees). One of the most important things on this document is the Due from Buyer line at the bottom. This is how much you will need to provide at closing, which is usually a Cashier’s Check made out to the Title Company itself.
I’d like to take this opportunity to explain how the money gets handled, to clear up why you wouldn’t write the check to the sellers. If you’re financing the home (which most are), the lender will be providing the lion’s share of the funding for the home. The seller side probably has part of the home financed as well. This is where escrow and the Title Company come in. The money from the buyer side is coming from the buyer and the bank they’re financed through, and that sum gets divided between the seller and the bank they were financed through. The Title Company will have all this information and distribute the funds properly.
Along with the Cashier’s Check, you will need your legal identification (usually a driver’s license) so your signatures can be notarized. This applies to everyone that will be on the deed and signing.
Last, but not least: KEYS!! This is the exciting part. The sellers will usually leave the keys at the title company, and the buyers will pick them up. Closing usually takes about an hour, and the Title Company electronically files the paperwork to transfer ownership, so you will usually officially own the home a few hours post-closing, when the recording takes place. You will most likely not be granted access until recording happens. The Title company will let your Realtor know, and they will apprise you of the happy news! Congratulations!
I hope this helps you understand your upcoming close! As always: the more you know the better off you’ll be.