Getting ready for settlement

Don’t forget to start your new utilities. That sounds simple, but you’d be surprised how many people forget to apply for utility service at their new home. Call the utility companies as soon as you have a ratified contract of sale. Find out how many days lead time they need to switch the service, then get back with them when you have a firm closing date. Don’t forget to discontinue services at your old home.

For settlement day you will need a cashiers check payable to the title company. Some title companies are starting to require that the money be wired if the amount owed at settlement is greater than $25,000, be sure to check with your title company to see if they want a cashiers check or a wire. Make sure you allow enough time to get this in advance of closing. The title company acts as the central escrow agent and handles all funds, so the check is made payable to them.

As far as how much the check should be made out for, we try and get the bank and the title company to coordinate to get you a copy of the final HUD1/Settlement Sheet 24 hours in advance of closing. Or if we are running short of time and you need to get to the bank you can take someone’s estimate (whether it is ours, the Realtor’s or the title company’s) and get the cashiers check for that amount. If using an estimate and the cashiers check you bring to the table is too much, they’ll cut you a check back for the overage, and if the cashiers check you have brought is too little then you can make up the difference with a personal check (so bring your personal checkbook as well).

Otherwise, you just bring yourself, a pen, a photo ID, the cashiers check, and your personal checkbook, and you will have all you need.

If this loan is a cash out refinance, or an equity loan/line, you will not get your funds until 4 days after closing. There is a 3 day “rescission period” that is mandated by the Federal Government. This is a cooling off period, where they mandate you have 3 days, after singing the closing papers, to review the loan, and if for some reason you desire you can rescind and cancel the loan.