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so you are wondering what happens at a real estate closing guess what we're gonna find out right now [Music] hey everybody I'm Tiffany Weber a North Carolina real estate attorney now I'm going to talk to you today about what happens between when you sign the contract and when you actually closed on the property the closing itself is the culmination of weeks of hard work by all the parties involved including you the buyer or seller depending on which party you are both Realtors lenders and the law firm the very first thing that has to happen after you sign the contract is your attorney has to perform a title search in North Carolina attorneys represent buyers in a real estate closing so we're gonna make sure that we do a full history report on the property to make sure that there is nothing that can impede your ability to own that property free and clear a title search can sometimes reveal that there are easements affecting the property perhaps the seller might have a lien or a judgment or a bankruptcy affecting the property that has to be satisfied so that it doesn't affect the buyer the title search will also prove that the seller actually owns the property especially in cases of an estate after the title search is done there are a lot of things that have to happen all at once whether it's by our law office by your lender or by your agent so some of those things include you're likely going to need an appraisal if you're purchasing a home with a lender they're gonna want to make sure that the house is worth what they're actually gonna lend you the money for there's also going to need to be inspections on the property to make sure that the condition is good that way you can ask your seller for repairs if necessary and they can decide whether or not they'll complete those also while all of this is going on your lender is hard at work gathering all of the information from you necessary to make sure that you can get approved for the loan at the terms that you want also our office recommends to every single buyer that you should get a survey on the property that you're buying it's so important for a lot of reasons that I'll go into in other videos but the main thing you need to know is that a survey is going to identify the boundaries of your property and make sure that there isn't anything as far as an easement or encroachments affecting the property that you should definitely know about you would be surprised to hear the horror stories that can come about when you don't get a service I can't believe it but this actually happened I've seen a situation where a person was buying a property where the boundary line actually cut through the middle of the home I know it's crazy but it can happen especially with family land and lack of surveys so usually those things are simple fixes that require a couple extra pieces of paperwork a couple extra filings but it still has to be done and all of that could have been prevented with a survey while everything else is going on we're at the law office preparing your closing documents now that's a long thick stack of paperwork that you're gonna have to sign at the closing table and it includes a lot of official documents that will be recorded with the Register of Deeds to make sure that you gained official ownership of the property during this process if we come across any issues we'll let you or your agent know so that we can get everything cleared up before the closing date and once your lender gives us the clear to close that means that you can come in and sign all the paperwork so you are at the closing table you're wondering what am I going to sign well it's a lot and that's starting with we're going to show you a plaque or some sort of visual reference of the property to make sure that you're buying what you think you're buying again another horror story that thankfully didn't happen in our office but it's happened before we're without a survey someone bought a property that they thought was actually the property down the street and they didn't know it until months later so in our office we always like to show you the property right there on a piece of paper and ask you is this what you're meaning to buy next we're gonna go over the title work which I mentioned earlier is the history report on the property so we'll call out anything that you should really be aware of whether or not there are restrictions on the property that might affect what you want to do with it for example some neighborhoods you can't have chickens if you really want chickens that's not a good place for you to live also we'll talk to you about whether there aren't restrictions on the property what rules you do have to follow because you still have to follow a local zoning laws or the state the laws of your town or state so after we've talked to you about the title reports we're going to go over the document known as your closing disclosure now you get this at the very very beginning of the process and it's called a loan estimate from your lender so what your lender this comes up with a really close guess of what your closing costs will be what charges will be assessed to you at the closing related to you getting a loan but because that can change over time depending on what inspections you may need whether you get a survey or not then you have to get what is an updated closing disclosure right before the closing now most of the time people will get that see it in their email disregard it so that's why we spend time at the closing going over every page of that disclosure so you understand what your charges are related to the closing so that includes what your down payment is do you have any escrows and escrows that means that if your lender is going to pay your taxes and insurance it'll come out of your monthly payment every month rather than you paying it separately we'll talk to you about that too we'll also talk to talk to you about features of the loan meaning do you have any weird terms that you should be aware of is that out of the ordinary does your rate fluctuate will you be paying the taxes and insurance yourself can you prepay we'll talk about all of those things and finally we'll talk to you about how you can get in touch with everyone that was involved with the loan or with the closing and that'll also be included on your closing disclosure next we're going to go through a series of affidavits or affirmations where you can tell us your marital status because it is important in North Carolina what your marital status is because it affects how you hold title to property so we're gonna affirm that with you make sure that we've got everything correct on the deed speaking of how you hold title meaning how you own the property we're gonna look at the deed with you and make sure that your name is spelled correctly and also make sure that we have a good mailing address this mailing address is where the tax office is going to send you your tax bill every year just so you can be informed during this process we're going to have your cell or affirm that there are no liens that could affect the property meaning there's no one that's done work on the property that hasn't been paid and we're also going to make sure that the seller affirms that if someone perhaps could claim only on the property and hasn't done so yet that they'll make sure they handle it for you after this part your seller is usually done with the process and everything left is for the buyer to sign and first up is your promise to pay the money back yes you have to that is done by using the note so the promissory note is where it lays out the terms of your loans such as when you begin to repay the money at what rate and if you default what the percentage points might be that you have to pay as a penalty following that you're going to sign your deed of trust and that's the instrument that gives your lender its security interest in the property which is a really fancy way of saying if you don't pay you don't stay after you've done those two very important legal documents we'll move on to the other documents that your lender wants you to sign usually that includes your loan application where you affirm that you haven't quit your jobs since you applied for the loan and that your income hasn't changed substantially you didn't run off buy a bunch of furniture or appliances or a boat next we'll look at your amortization schedule which shows you how principal and interest is applied to the loan over time so which portion of your payment's actually goes to paying down the loan depending on your lender there could be several more documents that you sign that affirm your tax identification number or if you have an FHA or a VA loan then you're going to have other documents specific to the program that you're using I know this is a lot of information that every closing is different so this is a general idea of what you can expect at your closing and then once you've signed everything all that's left is for the deed to be recorded then the home is yours [Music] alright everybody I hope that information was helpful at our law firm we want to educate everyone and demystify their real estate buying and selling process as much as possible so if this helped you make sure that you subscribe like comment ask us whatever questions you have and we'll see you at the next video [Music]