Closing Process
To the untrained eye, a closing may seem like nothing more than a lengthy meeting where buyers and sellers join their agent and an attorney to sign a few papers. But before and after the signing ceremony, our staff is busy handling a myriad of legal and financial details related to your transaction. With our well defined closing machine, we are able to deliver the kind of Smooth Closings that move headaches away from the loan officers, agents, buyers and sellers.
There are three phases to every closing process: pre closing, closing and post closing. At Craig Long, LLC, we employ experienced staff to support each of these important phases.
Pre-Closing
When someone borrows money to buy real estate, we receive a title order from a loan officer. That is our cue to run a title search on the property.
1. First, we send an abstractor to the court house to abstract the title to the property. The abstraction consists of all the documents in the chain of title that affect title to the subject property.
2. Next, we produce a Closing Protection Letter (CPL) from Stewart Title (our title company) that says we agree to underwrite insurance on this property and that if we have overlooked any details in the property abstract, we are liable. We also produce a commitment to issue title insurance that spells out what we need to do in order to write the policy and provides details of cost and liability. Once complete, these documents are forwarded to your lender.
3. The third step is to order payoff information from current lien holders plus perform other legal research like checking the validity of any liens, review a copy of the HOA covenants and verify validity of prior loan information by contacting former attorneys.
4. Finally, we are able to begin preparation of the loan package, starting with preparation of the HUD-1 (or settlement statement). Once we gain approval from all parties, we print the entire package and get ready for the signing ceremony.
Pre-closing can be as in depth or detailed as the title to the property requires.. Sometimes we encounter heavy lifting, like when a title search indicates the property is in foreclosure or ownership falls to deceased owners. Other times, title is clean and not in need of a great deal of curative work.
Jamie Pryor manages all of our pre-closing efforts in conjunction with attorneys on staff.
Closings
The actual closing process presents an opportunity for the attorney to review the settlement statement – breaking down all of the debits and credits – for the buyer and seller so they understand why people bring or get money at closing. Both parties should have seen the settlement statement in advance of the closing so there should be no surprises.
Next we disburse money at closing – to both the seller and the agent.
Even with the best preparation, sometimes disputes will arise at closing. And because there are significant monies involved, these situations can quickly become unpleasant.
Fortunately, Craig Long employs a calm and confident approach to explaining all of the details of that transaction that ultimately makes the agents look good while putting their clients at ease.
Post-Closing
Closings are hardly finished with the signing ceremony. Afterwards our staff must still manage the disbursements of money. In addition to paying off the seller’s existing mortgage, checks are remitted for intangibles and transfer tax to the county, the insurance company, the mortgage broker and the contractor that made repairs required for sale. Usually a dozen or more checks are cut at closing all of which fall under the heading of disbursements.
After handling disbursements, the recording of documents, including the Security Deed (which is the official name for mortgages originated in Georgia) is filed. Filing in the proper order is essential to maintaining the rights of the parties involved.
The final step of production is the creation of the title insurance policy. This is the creation of the policy that was described in the CPL. Craig Long, LLC underwrites the policy through Stewart Title Insurance.
Stacey Jones performs Post-Closing efforts.
