Documents and Information Needed From Seller at Home Closing
Basic Information to be Provided by Seller
One of the first requirements for a seller that will be required information needed from a seller at home closing is identification. The closing attorney will want picture identification that proves you are who you say you are. Both the buyer and the seller will be required to provide this information.
Time Dependent Tax Bills
There is some information that is time dependent which will determine what information is needed from a seller at closing. If you are closing after a property tax bill has been paid but before a new one is due, as the seller you will have to prove that the taxes have been paid. This will allow the lender to pro-rate the amount of taxes that may be owed to you as the seller. Generally, this amount is added to the amount that you will receive at the closing of the sale.
Warranty Deed
Perhaps one of the most important pieces of information needed from a seller at closing is a warranty deed. In most cases, the closing attorney will draw up this document for signatures. This document transfers the property from the seller(s) to the buyer(s) and is required on all real estate transactions. Remember, as the seller, you will be paying off your mortgage resulting in your being removed from the current deed.
Mortgage and Insurance Information
Other critical pieces of information needed from a seller at closing includes information on mortgages and insurance. Most lenders will require proof that you, as the seller, have maintained property insurance up through the date of closing. This is to protect both the buyer and the lender in the event that the home burned down or some other catastrophe that caused damage to the property is covered.
Mortgage information is required which should include the name of the mortgage company, the account number associated with the mortgage and the names that are listed on the mortgage. Fortunately, most of this information is provided prior to closing, however the closing attorney may ask that you bring verification to the closing.
Finances Matter
Depending on the agreement with the buyer, the seller may also be required to bring funds to the closing. In some cases, sellers have agreed to pay all or part of the closing costs. Some lenders will allow this amount to be deducted from the final payout figure, while others will request they be made available in the form of certified funds on the day of closing.
Closing Date Obligations
While the buyer is required to bring much more information than the seller to a loan closing, there are still specific pieces of information needed from seller at home closings. Failure to have this information could result in unnecessary delays in the closing process. Make sure that you speak with the closing attorney in sufficient time to ensure that any information needed from seller at home closing is available on the day of closing. This can help ensure that the home sale closing process is much easier for all of the parties involved.
Image Sources and References
Image: istockphoto.com/Feverpitched
Resources:
HUD Common Questions from First-time Homebuyers - https://www.hud.gov/buying/comq.cfm
BankRate.Com: Survival guide to a real estate closing - https://www.bankrate.com/brm/news/real-estate/buyerguide2004/closing.asp
