aMenu
x
Contact Us

Contact Info x

What to Expect on Closing Day: Your Ultimate Guide to an Awesome Experience

The Final Countdown: Preparation is Key

Here are some steps you should take to ensure a smooth closing:

  1. Review Your Closing Disclosure: At least three days before closing, you’ll receive a Closing Disclosure. This document outlines the final terms and costs of your loan. Take the time to review it carefully. If you have any questions or notice discrepancies, call us or address them with your lender.
  2. Gather Necessary Documents: Bring a valid photo ID, an additional form of identification, proof of homeowners insurance, and any other documents your lender or real estate agent requires.
  3. Get a Cashier’s Check or Arrange a Wire Transfer: You’ll need to bring the necessary funds for your down payment and closing costs. Your Closing Disclosure will specify the amount. Ensure ahead of time these funds are immediately available in the form of a certified check or wire and that you’ve followed your title company’s instructions for transferring them securely.

The Morning of Closing Day: Anticipation Builds

You wake up on closing day with a mixture of excitement and nerves. Take a deep breath and remember, you’ve got this! Here’s what the day might look like:

Final Walk Through: Schedule your final walk through with your realtor to view the property one last time to ensure your home is in good order and any required repairs have been completed. Give yourself plenty of time to get to the closing location, so you are not rushed.

Arriving at the Closing: The Big Event

When you arrive at the closing office, you’ll be greeted by our team – our front of house hospitality coordinator, your closing coordinator and your closer. Here’s what happens next:

  1. Introductions and Paperwork: You will be greeted with a smile at the door, offered something to eat and drink and provide your driver’s license for identification verification. You’ll meet with various parties involved in the transaction, including the seller, real estate agents, and possibly your lender. Your closer will guide you through the stack of paperwork you’ll be signing. This includes the deed, mortgage, note, Closing Disclosure and other legal documents prepared by your lender and title company.
  2. Review and Sign: As you sign each document, your closing agent will explain its purpose. Don’t hesitate to ask questions if something is not clear. This is your moment to ensure you understand all of the terms and conditions of your purchase and financing.
  3. Final Walkthrough of Costs: You will review the Closing Disclosure (final financial details) once more. This includes your down payment, closing costs, and any prepaid expenses like property taxes and homeowners insurance.
  4. Ask Questions: This is a great time to ask any questions you may have about your new home to the seller and the seller’s realtor. For example, any questions regarding utilities, functionality of the home, etc.

Congratulations! You are a Homeowner!

After all the documents are signed and funds are transferred, it’s time for the most exciting part of the day: receiving the keys to your new home! This moment is often accompanied by smiles, handshakes, and even a few happy tears. Congratulations, you’re now a homeowner! Most homeowner’s request that we take a picture to commemorate this fantastic memory and we are happy to spend as much time taking pictures and celebrating with you as possible! When you close with Durrett Title, you will receive a special gift available only to our homebuyer clients.

A Smooth Closing with Durrett Law & Title, LLC

At Durrett Law & Title, LLC, we’re committed to making your closing day experience as smooth and enjoyable as possible. Here’s what sets us apart:

  1. Expert Guidance: Our team of experienced professionals will guide you through every step of the closing process. We love our clients and will communicate with you throughout the entire process so you know what to expect and get all of your questions answered. Our goal is for you to come to closing relaxed, confident and informed.
  2. Personalized Service: We understand that every homebuyer’s journey is unique. We tailor our services to meet your specific needs and provide a personalized experience. We communicate with you how and when you want to meet your specific needs.
  3. Attention to Detail: We handle all the details meticulously, so you can focus on the excitement of becoming a homeowner. From title searches to document preparation, we have got you covered.
  4. Positive Atmosphere: We believe closing day should be a celebration. Our team strives to create a welcoming and positive atmosphere, so you leave our office with a smile on your face.

Final Thoughts: Embrace the Moment

Closing day marks the end of one chapter and the beginning of another. It’s a day filled with excitement, anticipation, and a sense of accomplishment. By knowing what to expect and preparing in advance, you can fully embrace this special moment.

From all of us at Durrett Law & Title, LLC, congratulations on your new home! We’re honored to be part of your journey and look forward to helping you with all your future real estate needs.

If you have any questions or need assistance, don’t hesitate to reach out. Happy closing day, and welcome to your new home!

Homebuyer’s Quick Guide to Understanding the Closing Disclosure

Purchasing a home is a significant milestone in anyone's life. It's a journey filled with excitement, anticipation, and a lot of paperwork. As a Louisiana real estate title company, we demystify the Closing Disclosure and ensure you understand every detail before you close on your new home.

What is the Closing Disclosure?

The Closing Disclosure is a five-page form signed by homebuyers at closing which is required by a U.S. government agency called the Consumer Financial Protection Bureau. The Closing Disclosure provides details about the mortgage loan you have selected, as well as information as to your loan terms, projected monthly payments, and how much you will pay in fees and other costs to get your mortgage (also called closing costs). You should receive this document at least three business days before your closing date, giving you ample time to review it thoroughly.

The Purpose of the Closing Disclosure

The primary purpose of the Closing Disclosure is to provide transparency. It ensures that there are no surprises at the closing table by offering a detailed breakdown of the financial aspects of your home purchase. By reviewing this document with a trusted real estate title company, you can verify that the terms of your loan and the costs associated with it are exactly what you expected.

Page-by-Page Breakdown of the Closing Disclosure

Now let’s break the Closing Disclosure down.

Page 1: Loan Terms, Projected Payments, and Costs at Closing:

1. Loan Terms - This section outlines the critical terms of your loan, including:

  • Loan Amount: The total amount of money you are borrowing.
  • Interest Rate: The cost of borrowing the money, expressed as a percentage.
  • Monthly Principal & Interest: Your monthly payment that goes towards the loan amount and interest.
  • Prepayment Penalty: Any fee for paying off the loan early.
  • Balloon Payment: A larger-than-usual payment at the end of the loan term, if applicable.

2. Projected Payments

This section shows a breakdown of your monthly payments, including:

  • Principal & Interest: Your regular loan payment.
  • Estimated Escrow: Funds held by your lender to pay property taxes and insurance.
  • Mortgage Insurance: If required.

3. Closing Costs and Funds Required to Close

This section shows the total amount you’ll need to bring to closing, which includes:

  • Closing Costs: All fees, prepaids and other costs associated with your loan.
  • Cash to Close: The total amount of funds you are required to bring to your closing, including your down payment.

Page 2: Closing Costs and Prepaids

Page 2 provides a detailed breakdown of your closing costs and prepaids, divided into two main sections:

  1. Loan Costs
    • Origination Charges: Fees for processing your loan application.
    • Services You Cannot Shop For: Costs for services required by your lender, such as an appraisal or credit report.
    • Services You Can Shop For: Fees for closing service providers such as an abstractor, title and escrow company, survey, title insurance, and any other professional costs or fees.
  2. Other Costs
    • Taxes and Other Government Fees: Recording fees charged by the parish Clerk of Court offices for recording documents such as the deed, mortgage, and any other documents filed into the public records system.
    • Prepaids: Upfront payments usually held by your mortgage servicing company in advance on your behalf to pay for current and future property taxes, homeowner’s insurance, and prepaid interest.
    • Other: Additional costs such as real estate agent and/or broker commissions, homeowner’s association fees, home warranties, etc.

Page 3: Cash to Close and Summary of Transactions

Page 3 provides a summary of the homebuyer’s credits and debits contained on the prior pages and shows the total net amount you will need to bring to closing, including:

Page 4: Additional Information About Your Loan

This page offers detailed information about the terms of your loan, including:

Page 5: Loan Calculations, Other Disclosures, and Contact Information

Tips for Reviewing Your Closing Disclosure

    1. Compare with Your Loan Estimate: The Loan Estimate, which you received when you first applied for your loan, should closely match the Closing Disclosure. Look for any significant discrepancies and ask your lender and/or title company to explain them.

    2. Check for Accuracy: Verify that all personal information, loan terms, and property details are correct. Ensure that the spelling of your name, property address, and other critical details are accurate.

    3. Understand Your Costs: Make sure you understand each fee listed and why each is being charged. Don’t hesitate to ask for clarification if something doesn’t make sense.

    4. Review Your Monthly Payment: Ensure your projected monthly payment fits within your budget. Remember to account for any changes due to property taxes or insurance.

    5. Confirm Your Cash to Close: Double-check the amount you need to bring to closing. Make sure you have the necessary funds available and know how to transfer them.  Generally, any amount over $2,500 must be in the form of a certified check or wire.  Make sure to make arrangements far in advance to ensure you will have certified funds delivered to your title company at closing.

Final Thoughts

The Closing Disclosure is a vital document in the homebuying process. Taking the time to review it thoroughly can save you from potential surprises and ensure you’re fully prepared for your closing day. At Durrett Title, LLC, we’re here to guide you every step of the way, providing the expertise and support you need to make informed decisions. If you have any questions about your Closing Disclosure or any other part of the homebuying process, don’t hesitate to reach out to our experienced team. Happy homebuying!

 

Understanding the Role of a Louisiana Real Estate Title Company

Navigating the real estate market can be a daunting task, filled with legalities and documentation that can overwhelm both seasoned professionals and first-time homebuyers. In Louisiana, one of the key players that ensures a smooth transaction is the real estate title company. But what exactly does a title company do, and why is it so crucial in the real estate process? Let's delve into the responsibilities, functions, and importance of a Louisiana real estate title company.

What is a Title Company?

A title company plays a pivotal role in real estate transactions. Its primary function is to ensure that the title to a property is legitimate and to facilitate the closing process. This involves a thorough examination of public records to verify the legal ownership of a property and to identify any claims or liens that could affect the transfer of ownership.

Core Functions of a Louisiana Real Estate Title Company

  • Title Search and Examination
    The first step in any real estate transaction is a title search. This involves a detailed review of public records and other documents to confirm the legal ownership of the property and to identify any issues that might hinder the sale. In Louisiana, this process is particularly crucial due to the state's unique property, succession, business, and other laws.
  • Communication
    Communication during the closing process is critical to ensure all parties understand the process and can meet important deadlines. Your title company should reach out early and often and be flexible in the preferred form of communication for each buyer, seller, realtor, investor, lender, etc.
  • Escrow Services
    Louisiana Title companies act as escrow agents, holding funds, documents, and other necessary items until all conditions of the sale are met. This ensures that both parties fulfill their obligations before the property and money change hands.
  • Closing Services:
    The closing is the final step in a real estate transaction, where the title company coordinates the signing of legal documents, ensures that all financial transactions are completed, and facilitates the transfer of ownership.
  • Document Recording and Post-Closing
    After the closing, the title company records the new deed, mortgage, and any other pertinent documents with the appropriate parish office(s) to make the transfer of ownership official and to update public records. Your title company should also mail out certified copies to the parties to the closing and follow up with post-closing requirements to ensure mortgage or other payoffs and other closing requirements have been completed.
  • Title Insurance:
    The title company issues title insurance required by the lender and/or buyer. This insurance protects the buyer and lender from any future claims against the property that were not discoverable during the title search. There are two types of title insurance: lender's title insurance, which protects the lender, and owner's title insurance, which protects the buyer.

Why is a Title Company Essential in Louisiana?

  1. Facilitating Smooth Transactions:
    Louisiana real estate transactions are both legally complicated and involve multiple parties, including buyers, sellers, lenders, and real estate agents. A title company acts as a neutral third party, ensuring that all necessary documents are signed, funds are appropriately disbursed, and the transaction adheres to state laws. This coordination is crucial for a seamless and stress-free closing process.
  2. Protecting Against Title Defects:
    Title defects can arise from various issues, such as unpaid taxes, unresolved liens, missing links in the chain of title, or clerical errors in public records. These defects can pose significant risks to buyers and lenders. By conducting thorough title searches and providing title insurance, a title company protects all parties involved from potential expensive legal and financial issues.
  3. The Importance of Title Insurance:
    Title insurance is a vital component of real estate transactions, providing peace of mind to buyers and lenders. If a title defect is discovered after the sale, title insurance protects the policyholder from financial loss. For buyers, owner's title insurance ensures that their ownership rights are safeguarded, while lender's title insurance protects the lender's investment in the property.
    Some common covered risks include:
    Undisclosed Heirs: In cases where previous owners may have passed away, undisclosed heirs could later come forward to claim ownership.
    Fraud and Forgery: Fraudulent claims or forged documents that could affect the ownership of the property.
    Clerical Errors: Mistakes in public records or legal documents can lead to disputes over property ownership.

Choosing the Right Title Company

Selecting a reputable title company is crucial for a successful real estate transaction. When choosing a title company in Louisiana, consider the following factors:

  1. Experience and Expertise:
    Look for a title company with extensive experience in the Louisiana real estate market. Their familiarity with state-specific laws and regulations ensures that the transaction is handled smoothly and accurately.
  2. Reputation:
    Research the title company's reputation by reading reviews and seeking recommendations from real estate agents, lenders, or previous clients. A company with a strong track record of customer satisfaction is more likely to provide reliable service.
  3. Security:
    Cyber-security fish is at an all-time high. When selecting a title company, ask about what security measures are taken to protect your personal information, share documents securely, and ensure wire transfers and other funding methods are as secure as possible.
  4. Communication:
    Effective communication is essential throughout the real estate process. Select a title company that maintains open lines of communication, keeps all parties informed at every stage of the transaction, and can be flexible with different methods of communication.

Conclusion

A Louisiana real estate title company plays a vital role in ensuring the integrity and legality of property transactions. From conducting thorough title searches and issuing title insurance to facilitating smooth closings and navigating the state's unique property laws, their expertise is indispensable. As the real estate industry continues to evolve, title companies are adapting to new technologies and trends to provide even more efficient and secure services. For anyone involved in a real estate transaction in Louisiana, partnering with a reputable title company is essential for a successful and stress-free experience.