Real Estate 107 – Closing (Alabama Version)

You made it!!!

That wasn't so bad, right? Aren't you glad you were prepared? Let's talk about the closing process so we can wrap this up and make you a home owner!

Who does the closing attorney represent?

They actually represent the lender or work as an intermediary if you do not have a mortgage involved. If you want an attorney that represents you specifically, you are welcome to hire one. Real estate agents cannot give you legal advice, so if your situation is unique then it might behoove you to do so. Most of the time buyers/sellers do not find this necessary.

What do I bring to closing?

Anyone that has to sign any paperwork or the deed needs to bring themselves and a form of government issued photo ID.

What if I can't be present for closing?

WHY HAVEN'T YOU SAID SOMETHING BEFORE NOW?!! Contact your agent right away and let them know your situation!

If I have to bring money to closing, who tells me how much, how do I bring the funds, and who do I make the funds payable to?

First and foremost - NO CASH OR PERSONAL CHECKS WILL BE ACCEPTED BY THE CLOSING ATTORNEY/TITLE COMPANY.

All funds must either be certified bank checks or wire transfers. Due to the high rise in wire fraud, ask your agent for the number to the attorney - but never do so in an email. Once money is wired, it cannot be recovered if it goes to the wrong account. Please make sure you know where you are sending your money.

The lender should tell you how much you'll need for closing in advance. If you don't know by 3pm the day before closing, reach out to your lender immediately to find out this information. If you're paying cash, your agent should send you a preliminary closing disclosure to review from the attorney/title company that will reflect the amount you need to bring.

The lender should tell you how much you'll need for closing in advance. If you don't know by 3pm the day before closing, reach out to your lender immediately to find out this information. If you're paying cash, your agent should send you a preliminary closing disclosure to review from the attorney/title company that will reflect the amount you need to bring.

The funds will be payable to the closing attorney/title company. They will disperse the money as reflected on the closing disclosure documents to all parties through their escrow account. Please note that just because you sign your papers at the designated time does not mean your funds have been processed yet. There are sometimes banking delays that cause "dry closings" to occur. Essentially everything is completed, but the wire from the lender or bank is in limbo and not deposited with the attorney/title company yet. Do not freak out - this isn't a major issue (unless someone makes it out to be a major issue for no reason).

If all goes as planned and the agreement states such, you should now be receiving the keys! Congrats on a successful closing! Be sure to leave your agent a positive review everywhere you can if they did a good job for you. Online reviews and personal referrals are super important to real estate agents! We hope you enjoy your new place for many years to come, and when you're ready to move on, we hope you give us a call to help you with your next chapter in life!