A closing agent or settlement agent is the entity or individual who oversees the closing process, including making sure the title is clear and all the money is collected, verified, and disbursed in accordance with the terms of the contract and loan documents. A representative of the closing agent, typically an attorney, will sit with all parties to go over documents and answer questions at the closing table.
So you’ve chosen your new home and are eager to get the ball rolling. The seller has accepted your offer and the home is under contract. What’s next?
Now it’s time to begin moving through the process of closing on your home and initiating all the necessary transactions. These transactions include items like home inspection, loan origination process, home appraisal, credit underwriting, loan approval, homeowner insurance, title insurance, closing disclosures, etc. Basically, everything that’s needed to get you to closing day!
What Does a Closing Agent Do?
Mortgage acquisition is never an especially easy or quick process. Acquiring a home loan takes careful and specialized knowledge to avoid errors, inefficiencies, or delays. When it comes to important decisions and technical details, you’ll need professional guidance.
That’s where the closing agent comes in.
Also called a settlement agent or closing attorney, the closing agent wants to help you take care of the details so you can get into your new home as fast and financially sound as possible. The role of the closing agent is to:
- Act as a third party to help a buyer and seller complete a transaction
- Determine, draw up, and distribute documentation
- Confirm all documents are filled out properly and signed by all necessary parties
- Certify there are no legal, tax, or regulatory issues connected to the title or sale
- Transfer payment to the seller
- Distribute commissions to real estate agents
- Disburse all fees and payments to all third parties involved in the transaction
- Transfer and record the deed
That’s Not All Closing Agents Do
Beyond ensuring the seller and real estate agents get paid, the closing agent also handles matters related to the deed of the property. That means they’re dealing with county and local authorities concerning the legal status of the property.
While not always a lawyer, a closing agent needs to know quite a bit about property statutes and procedures. Choosing a professional and experienced closing agent helps to ensure you won’t run into any documentation issues or legal complications down the line.
I’ve Chosen A Closing Agent, What Now?
You’ll get the best results by taking an active interest in the process. Feel free to ask questions concerning your loan, transactions, and property’s legal status. Your Realtor should be able to answer most questions but don’t be concerned if they refer you to your closing agent. Taking an active role will make the process clearer and help you get where you need to be. It’s a big moment, after all.
You may also want to get familiar with issues that may prevent your home from closing.
Ready to Get Started?
The process of acquiring a home loan can be stressful and complicated. That’s all the more reason consumers should ensure they’re guided through that process by an experienced professional. At Heights Title we guarantee the highest standard of professionalism, and we’re waiting to hear from you. Click here for a free quote today!
This material is provided as a courtesy and for educational purposes only. Please consult your title professional for specific information regarding your situation.