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 to them when you have a firm closing date. Don’t forget to discontinue services at your old home.

Get your funds ready for closing

For settlement day you will need a cashiers check payable to the title company or you can wire funds to closing. Be sure to check with your title company to see if they want a cashiers check or a wire and get wire instructions from them if you plan to send a wire. Make sure you allow enough time to get this before closing as a wire may take a day or two to get to the title company’s account. The title company acts as the central escrow agent and handles all funds so any cashiers check is made payable to them and any wire is sent to them.

How much is due?

As far as how much the cashiers check/wire should be made out for we try and coordinate with the title company to get a copy of the final Closing Disclosure 24 hours in advance of closing. If the cashiers check/wire you provide is too much the title company will cut you a check back for the overage. If the cashiers check/wire is too little then you can make up the difference with a personal check so bring your personal checkbook as well. Otherwise just bring yourself, a pen, a photo ID and your personal checkbook.

What if I am doing a cash out refinance?

If this loan is a cash out refinance 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 signing the closing papers to review the loan, and if for some reason you desire to do so, you can rescind and cancel the loan.