What happens at closing? in Michigan

Closing is probably the most exciting part of the loan process! It is when you take ownership of your new home, or you get your cash out (after 3 day recission period) from refinancing, or possibly when you start saving money from a rate and term refinance. There are some things that you should expect to happen at your closing.

First, a public notary is ordered to be present at the closing. The job of the notary is to document the legal presence of all borrowers and certify that it was indeed the named borrowers signature placed in the appropriate areas of the loan documentation in witness of the notary.

Where you live will determine what type of closing will take place. There is whats called a round table closing where the buyers and sellers sit down together along with a representative from the title agency and usually the Realtors involved also. Then there is also a type of closing known as an escrow closing. This is when the closings for the buyer and for the seller do not happen together or face to face. This type of closing may be done at different locations or at different time of the day. Usually your geographic area that you are located in will dictate which type of closing you will have.

Some states are "Lawyer" States. This is when the closing is done by a Real Estate Lawyer rather than a public notary.

All parties attending the settlement are identified. Closing attorneys will request photo identifications from all signers. To ensure a smooth settlement process, be sure to bring several forms of valid photo ID's.

If you are purchasing a home the closing is ended with your keys being handed to you as the owner of a new home. If you are refnancing and pulling cash out you will have to wait 3 days to receive your money.

At the closing you will be given all documents related to the closing of your loan, and documents relating to transfer of ownership if a purchase.

For a purchase transaction, if the buyer signs the documents before the seller, he can't get the house key until the seller comes in to sign the documents. Then the lender will review all the documents signed by both parties. If everything is approved, then the lender will wire the money to the title company, and then the title company confirms if the lender has funded enough money. After everything is verified, the title company will hand over the key to the buyer.