Closing on your first home can feel like reaching the finish line of your goal. Most people are ready to have their keys in hand and start life’s new adventure. However, before beginning that new chapter in their lives, they need to complete the mortgage process by working with their mortgage professionals. When it comes to who’s who in the mortgage process, the closing agent can play a big part.
What Does a Closing Agent Do?
A closing agent, or settlement agent, manages the required documents for a home closing. They also play a part in transferring funds and property ownership through escrow or trust accounts. The closing agent is a neutral party, meaning they don’t work specifically for the buyer or seller. Instead, they work as a custodian who manages documentation for both parties to ensure a seamless closing of a home. Without a settlement agent, it could be overwhelming for both parties to know which documents are required or completed correctly.
What Type of Documents Does the Closing Agent Handle?
There are multiple document types that the settlement agent may assist with. For example, they may assist with the following:
- Sales contract
- Any inspection paperwork, like termite inspection
- Attorney information
- Home warranty paperwork
- Lender documents, like the loan package the lender provides
- Closing instructions and disbursement details
Once the required documents are received, the closing agent prepares the settlement statement, affidavit, and loan documents for the closing table.
What Happens Next?
At loan closing, the settlement agent will meet with the borrower, seller, and their respective mortgage agents. The closing agent will ensure all documents are properly signed, witnessed, and distributed to the correct parties.
Once the settlement agent confirms that both the buyer and settler are satisfied that the paperwork is accurate, they collect any checks or deposits. Despite collecting the checks at closing, those funds are not typically disbursed in entirety until the transaction has been recorded. If needed, an escrow account is established for the property tax and insurance. Homebuyers will take possession of the keys at closing if everything goes smoothly.
After the closing, the settlement agent will record the deed and mortgage with the appropriate courthouse. Once recorded, the original and copies of documents are returned to the correct parties and the title paperwork is completed. Those completed documents are typically returned to each party by mail.
Michigan Mortgage Lender, Julie Krumholz from Superior National Bank
Julie Krumholz is no stranger to what goes into the mortgage process for a smooth transition to homeownership. For over 35 years, Julie has been a trusted resource and friend to homebuyers. Julie has worked in processing, closing and loan origination, underwriting, QC auditing and has even co-owned a mortgage brokerage firm. She applies her wealth of knowledge to help first-time and experienced homebuyers alike make their homeownership dream a reality.