What Typically Happens At A Real Estate Closing In Washington?
At the time of closing, any issues regarding title should have already been identified and addressed. The actual closing process in Washington State occurs when the title has been fully cleared and the bank has confirmed that they are ready to fund. Signing appointments will be scheduled with the seller and the buyer. The key document that the seller has to sign is the deed transferring title to the buyer. The closing agent also prepares what’s called a settlement statement or a closing statement, which sets forth the purchase price and all of the various closing costs. The seller will sign the closing statement saying that they’ve reviewed it and agree with the escrow agent’s calculations and numbers. After that, there are usually escrow instructions that the seller signs, and a form for tax purposes that notifies the IRS that the property has been sold.
The buyer will sign escrow instructions and all of the loan documents, including the promissory note and the deed of trust. Generally, the bank will have set forth what’s called an escrow disclosure form, which is different than the escrow for the sale transaction. It pertains to the escrow that the bank maintains on an ongoing basis for property taxes and insurance premiums. In addition to making the payment on the loan, the buyer pays the bank an estimated amount each month for taxes and insurance, and the bank makes those payments on the buyer’s behalf using that money. If taxes or insurance increases, then the buyer’s monthly loan payment will increase.
Once the buyer has signed all of the documents, the escrow agent will send the lender copies of the signed loan documents so that the lender can review everything to make sure it was done properly. Next, they will do a balancing with the escrow agent to ensure that the funding numbers match. If they do, then the bank will wire the loan funds to the escrow agent. At this point the agent proceeds with “closing” by paying the seller’s loan and other monetary liens, paying closing costs and recording the deed to the buyer and the deed of trust in favor of the buyer’s lender. After closing the agent tracts the payments to the seller’s lien holders to ensure he or she receives the recorded lien releases.
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