What you need to know about the closing process when buying a house in Arizona?
The closing process is the final steps in real estate transaction. It is a big day, especially for buyer. Unlike many states, Arizona does not use the formal “sit down” closing with buyers and sellers, their agents, bankers and attorney seated around the table. Buyers and sellers typically have separate signing appointments. Most of the time, sellers has signed the needed documents before the buyer’s loan is completed. Hence, it is not uncommon for the buyer and seller to never meet.
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When the closing process start
The closing process usually begins 2 to 4 days prior to the scheduled close of escrow date with the lender delivering the buyer’s loan package and closing instruction to title company. The escrow officer then prepares a settlement statement containing a full accounting of all costs in the transaction. Then the escrow officer will notifies the buyer of any additional funds needed to close, aka buyer’s closing cost. At the same time, to set appointment for the buyer to sign the loan documents. Per Arizona Residential Resale Purchase Contract, buyer need to sign all loan documents no later than 3 days prior to the closing date.
Lender final approval
After buyer has signed all the loan documents, they will return to lender’s loan closer. The loan closer will review and approve the package for funding. After the package receive final approval, the closer will notifies the escrow officer that loan proceeds are available. From the time of your signing, it will usually take 24-48 hours for the lender to fund the loan. This, of course, assumes that there are no problems or discrepancies found in their review of the signed documents. Once all required funds are deposited and available for withdrawal in the escrow bank account, the deed is released for recording. The title company still has to submit the deed to the county for recording. When the deed is recorded with the county, then escrow is closed.
When do I get my keys after closing
After the escrow officer receive the confirmation that the new deed has been recorded with the county, the escrow officer will inform both buyer agent and listing agent “We had recorded”. The buyer agent will then only allow to get the keys from the property and hand over to buyer. The new buyers are only given the keys once the property is recorded in their name and not a minute earlier!
Thing to keep in mind
Plan on being physically available two to three days prior to the agreed upon closing date (as it is stated in the contract) to do your part. Some people schedule the movers for the closing date, but this is a mistake. Because the home is not yours until it records, and there is no way to know whether it will record at 9:00 am in the morning or at 4:30 pm, you will save yourself a lot of potential misery by scheduling the truck a day or two later.
Read: What Should I Bring for a Closing?
Conclusion
As you can see, this process requires a coordination of efforts among all parties to ensure a timely and successful closing. Many variables can come into play which could delay the closing or create last minute “surprises”. Your agent can prepare you for possible problem and have options available to smooth the way.
Swee Ng, Realtor and Phoenix East Valley resident specializing in win-win real estate transaction through great communication and fighting for his clients’ best interest. After all, this is more than real estates, this is about your life and your dreams.
If you are looking to buy or sell your home in Phoenix AZ and surrounding area, we hope you will consider us. Contact us today for complimentary consultation.
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