Yes. The following to-do list can help save you a few headaches and keep the settlement on track:
You may need to have more money available in your checking account than you had planned, because sometimes unexpected expenses appear during the closing, and this means that you will have to pay more at closing. These are often small items – fees for copying or courier services, for example. So take your checkbook with you. Ask your agent and lender team how much money you will need at the table. Of course, they may not have this information or be able to share it with you until the day before the settlement. The amount you need should be fairly close to what your Good Faith Estimate is.
Maryland is a “wet” settlement state, meaning that the settlement officer/title company must disburse money at closing, without waiting to see if your check will clear. Due to this rule, title companies require the buyer to pay with “Certified funds” at settlement – that is, funds that are guaranteed and that you cannot subsequently revoke, such as a money order, money wire, or cashier’s check. You may be permitted to pay small amounts (up to about $1,000) by personal check, especially if the title company has a continuing business relationship with the realtor or the lender, but that is not a given. Again, ask your team about using a personal check for incidental items, but bring certified funds for the big ticket items.
Make sure that you bring your government-issued ID to the closing. Usually this means your driver’s license. The settlement officer will need to verify you are who you say you are. This is actually worth mentioning – more than once, I have had clients who were so excited about the settlement that they forgot to bring their ID.
Your name and how you spell it become important when settling on the sale of a house. You are going to see your printed name and then sign your name maybe two dozen times or more during the settlement. In the best circumstance, your printed name and your signature match 100%. However, sometimes your name from one document to another is less than a perfect match. You may use your married name sometimes, your maiden name sometimes, your hyphenated maiden-married name sometimes. You may go by a nickname that has really become your first name in practice, though your legal name is otherwise. You may have an uncommon spelling of your first name or your surname, and the clerks who prepared the documents for settlement may have made a mistake. If you are old enough, you may recall the experience of Jimmy Carter: When he became president, he wanted to sign legislation passed by Congress as “Jimmy Carter” rather than his given name of “James Earl Carter. Jr.”. For a short time, legal scholars debated whether legislation signed by the President as “Jimmy Carter” would be valid. Therefore, you need to check with your team (realtor, lender, title company) about the spelling of your name. If there are multiple spellings of your name, then you may need to sign an affidavit that all of these names refer to you. But in all events, make sure that your name is spelled correctly on the deed.
If you are like most people, you have a folder containing all of the documents you have received related to this transaction: Bring the folder with you to the settlement! At the very least, include the contract and any addendums that you may have signed (or need to sign). Your need for this documentation is unlikely, but better safe than sorry. Most likely, these documents will not be needed. And also most likely, your agent or lender will have them also. But just to be sure….
Do you anticipate your day of settlement as much as I did when I purchased my first house? It’s really an exciting event! But chill, just a little bit. Save the champagne until it’s over. First, make sure you show up on time: the settlement officer may have other settlements before and after yours; if you are a half-hour late, you may not be able to settle – so plan to show up early. In addition, unanticipated events may cause a postponement, through no one’s fault. So be prepared for surprises, including a possible delay. Usually, scheduled settlements do finally settle, so have faith in the process, and Good Luck!
Brendan Spear has worked as a Crofton Realtor for 5 years. He lives and works in and around the Bowie/Crofton area. If you would like to read his blog and other real estate updates, visit his CRrofton Real Estate website. Legal: Brendan Spear – New Focus Realty 410-721-7625. Equal Housing Opportunity.
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