Home Mortgage 101: Who Attends the Closing Process?

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Home Mortgage 101: Who Attends the Closing Process?

Filed under: Real Estate

By: Brandon Cornett

The participants at a real estate closing will differ from state to state and perhaps even county to county. The two participants you can count on being at the closing (or represented at the closing) are the buyer and the seller.

Who Attends the Closing?

In addition to the buyer and the seller there is typically a representative from the bank, the title company, and the real estate agent's office at the closing. In some states, like New York, there will also be attorneys for the buyer and the seller present at the closing.

The role of the seller is obvious. The role of the buyer is obvious. But what about the roles of the other players at the closing?

The Lender

The role of the lending institution is to ensure that the mortgage documents are properly signed and the funds are distributed. Some lenders will use the title company representative to handle this on their behalf, others will use a representative specifically from the bank, while other lending institutions may have attorneys handle their closings.

The primary focus of whoever is representing the bank is obviously to protect the interests of the bank. But the representative also wants to see the loan close, so think of yourselves as members of a team, not opponents.

Title Company Representative

The tile insurance company will have a representative at the closing to make sure all the terms and conditions (often referred to as exceptions) of the title policy are satisfied, and that the deed is properly executed.

The title insurance company will make sure all mortgages are paid off and there are no liens against the property. The person at the closing will also issue the official title insurance policy that protects the bank and the buyer.

Real Estate Agent(s)

The real estate agent(s) at the closing are primarily there to collect their commission, but they will also assist the buyer and the seller in completing the transaction. The real estate agent can prove helpful if any issues arise with adjustments or related issues that impact the transaction.

Real Estate Attorney(s)

If there are attorneys present, keep in mind that each attorney represents their client. Though everyone is working as a team to complete the transaction, it's still wise to know who has what interests at heart.

Who Runs the Show?

The bank representative and the title company representative will dictate most of the action at the closing, ensuring all documentation has been properly executed and the transaction was completed. The bank representative will also be the one dispersing the funds on behalf of the buyer to the seller.

Conclusion

As long as you keep in mind that everyone in the room has the same goal, yet each has a different area of focus, you will be able to enjoy a smooth real estate closing.

* Copyright 2006, Brandon Cornett. You may republish this article if you keep the byline and author's note, and also leave the hyperlinks active.

Brandon Cornett is publisher of Home Buying Institute, the Internet's largest library of home buying advice. You can learn more about the real estate closing process by visiting http://www.homebuyinginstitute.com