What You Need To Know About Title Companies - Guest Expert Rich Deck

Posted by Laine Smith on 10/24/14 9:00 AM

Topics: Economy

Rich Deck is an Account Executive with Carrington Title Partners and has been working with us here at Compass since we opened in 1999 to help clients get their loans closed. 

We asked Rich to be our guest expert this week and answer some key questions about title companies and what to expect when closing on a mortgage loan.


Q:  How should I best prepare for the closing table? 

A:  You, as the borrowers, must bring to the closing a valid State or Federal issued picture ID.  This will be required of everyone that is going to sign documents.  You should review a preliminary Settlement statement (HUD-1) with your Loan Officer and/or your Attorney prior to coming to the closing.  By doing this, you will know the amount of funds you must bring.

Q:  What should I expect and how much should I expect to bring to the closing table? 

A:  This will vary depending on your loan type and amount.  This question would be better answered by your Loan Officer or Attorney involved in the transaction. Some generic closing cost answers can be found here.

Q:  Who needs to be present at the closing? 

A:  All parties that are connected to the purchase and the loan.  As the purchaser, you should have your Attorney present to represent your interest.  In most cases, your Realtor, and sometimes Loan Officer, will also attend.  The sellers and their Attorney will be present.  Their Realtor will also likely be there.

Q:  What is the Attorney and Title Companies' role in the closing? 

A:  The buyer's and seller's Attorneys are to represent the best interest of their clients and to answer and legal questions you may have.  They also provide all of the necessary legal documents that are needed to complete the transaction.

The Title Company does a title search to determine the lawful owners' of the property, if there are any liens against the property and the status of the real estate taxes.  Both the Attorney and the lender review the title commitment.

Normally, the Title Company will actually conduct the closing.  They make sure that all of the documents are properly signed in accordance with Lender's closing instructions.

The funds from your new loan are deposited with the Title Company their escrow account.  The Title Company is responsible for taking those funds and paying off the current mortgage, any other liens on the property and paying all items on the Settlement Statement and as instructed by the Lender.

The Title Company is also responsible for getting all of the proper documents recorded.  They also issue a buyer's and a lender's title policy.


For more information on our guest blogger please go to http://www.carringtontitle.com.


Looking for more information on home buying?  Our Mortgage 101 Handbook is the ultimate guide for first-time homebuyers!


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