Phase 6: Closing Issues

Information for Home Buyers

Closing day is the day when you will acquire the keys and the garage door openers. Whether or not you move in is up to you.

In October 2015 the federal government changed the lingo from “Closing” to “Consummation.” So wherever you see the word “closing,” you may now think “consummation” if you want to be in step with the framers of Dodd-Frank. Don’t be confused. Just go with it. Also, please know that you can thank the powers that be in Washington, D.C. for making you get a motel room and watch all your plants wilt on the moving truck when you cannot close on time because of some glitch in the “consummation” process. It is just an “is.” There is no moral value to it. Just accept that fact that things are extremely complicated and defy explanation. Everyone is trying their best to help you move into your new home. It just might get a bit delayed.

Sometimes things come up at the last minute when the Lender is missing some necessary documentation or perhaps the title attorney will have discovered a title glitch that requires the Seller to correct a title problem.

Therefore, please do not put everything on the moving truck. Pack a small night bag containing your medication, your toothbrush, your contact lens solutions, a change of clothes, and whatever you cannot live without for a day or two just in case the closing does not happen as originally scheduled.

If you have animals, I can make recommendations for boarding them temporarily.

Be flexible. Ask your employer for the day off with the understanding that the date could change. They will usually understand. Know that your closers are working hard with your best interests in mind. They need to be thorough and complete in what they do and so it is very very important that all problems are resolved prior to closing.

Don’t forget. On the before the day of closing you will need to have your bank wire funds to the Closing Company in the amount provided on your Settlement Statement.

You should receive the Settlement Statement the day before closing. However, more often than not the Settlement Statement will be given to you on the day of closing (excuse me, the day of “consummation”) if not right before the closing itself. This is unfortunately just the way it is sometimes. So figure out in advance where your closest bank branches are between you and your closing office.

Some banks require that you sign documents in person to arrange for a wire transfer. If you bank with Wells Fargo, that will mean traveling to Kansas to visit a branch office to initiate the wire transfer (since there are no Wells Fargo branches in Oklahoma). Make sure you make arrangements for the wire transfer well in advance of the “consummation” or closing date.

If you are getting a mortgage loan, any last minute changes to the Settlement Statement could trigger an automatic extension of the Closing Date in order to comply with Dodd-Frank requirements known as TRID.

You will also need your driver’s license to comply with Patriot Act requirements.