Buyers can normally expect to bring money to the closing table. Typical categories for which costs may be incurred that are associated with the purchase of property include the following: Survey; Lenders and Owners’ Title Insurance; Government Recording Fees; Lender Fees; Escrow; Hazard Insurance Policy Premiums (Homeowners Insurance and Wind/Hail Insurance); Settlement agent fees (inclusive of fees for a title search); Drafting Fees for any additional documents requested; any other invoices to be paid at closing (pest inspection, home warranty, Homeowners Association dues, e.g.).
These charges will be set out on a Purchase Closing Disclosure (for lender closings) or a HUD Settlement Statement (for cash closings or home equity line closings) which buyers review prior to closing and execute on the day of closing. This document provides buyers with theexact dollar amount of funds needed to close. If possible, this amount is confirmed with the buyer several days prior to the day of closing. However, if the loan has not received a “clear to close” from the lender, the final amount that buyers need to submit to closing may not be confirmed until shortly before the closing is scheduled to occur. Regardless, the settlement agent/closing attorney should confirm the amount that the buyer needs to bring to closing directly with the buyer.
If the amount owed is less than $5,000.00, the funds can usually be submitted in the form of a certified check or cashier’s check (or a wire if preferred by the buyer). If the amount owed is more than $5,000.00, then the funds should be wired to the settlement agent/closing attorney. Wiring instructions should be provided by the settlement agent/closing attorney in person and/or through secure email. For their protection, buyers should then call the settlement agent/closing attorney at the number publicly available to confirm the account number and routing number provided by the attorney prior to wiring any funds. It is very uncommon for wiring instructions provided by an attorney for closing to change after they have been communicated to a buyer. If a change in wiring instructions has been communicated, buyers should take every precaution to call the settlement agent/closing attorney at the number publicly available to confirm any potential changes.