Every house closing is a little different from the next, but the main elements remain the same across the mortgage industry. While an excellent home mortgage representative will often try to keep the underwriting and approval process as seamless to you as possible, closing your mortgage with the title company can add an extra layer of difficulty to the communications. Because this is the final part of the lending process, it’s important you know what to expect the day of closing. It’s even more important to know what not to expect.
Title Company Function
In addition to performing your house closing, the title company performs a number of tasks behind the scenes crucial to the mortgage. Before your lender can file their lien on the property, they must verify the title is clear. Rather than requesting this information direct from the county, the title company that later closes the loan performs this service. When issues exist on the current title, such as unpaid property taxes or IRS liens, the title company works with the county to get the details needed to perfect the title. If it is something you must take care of yourself, they relay this information to your mortgage representative to pass along to you.
After the mortgage closing, a title company employee coordinates transferring the funds to the seller and sending the closing costs they collect from you to your lender. The title company then files all the requisite paperwork with the county to transfer legal ownership to you. In some cases, you may receive keys to the property during the house closing.
Title Company Limitations
Title companies perform more than one house closing each day, so the closers are familiar with the document format for various types of mortgage loans. This, however, does not make the employee an expert on your particular mortgage. Rather than waiting until your closing to ask questions about your loan, contact your mortgage representative in advance. If a question that hinders your ability to sign the agreement with confidence arises during closing, you must wait until the lender returns your call with clarification. A lengthy response time can mean postponing your closing for another day.
Also, keep in mind that the title company can allow only so long for each house closing if they hope to stay on schedule. Although you may enjoy a genial relationship with your mortgage representative, the title closer does not have the same amount of time to chat. In fact, a busy title company may encourage closers to keep the conversation focused on the documents on the table. You may dislike the hurried approach, but it will get you out of the mortgage closing and onto enjoying your new home sooner.
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