Closing Documents: The Deed, the Closing Statement, and Your Money

Closing Documents: The Deed, the Closing Statement, and Your Money

Direct answer: For Grand Rapids and West Michigan buyers and sellers, the two documents that matter most at closing are the deed and the closing statement — the deed transfers ownership, and the closing statement shows every dollar in and out.

The deed is the most important document

The closing statement is one of the most important documents for the buyer and the seller. But the deed is actually the most important — it is the legal document filed with the county and the city saying this person has purchased the home for an agreed amount, and those names are now being transferred as the new owner.

So the deed is the most important part. But the funds, the money, is obviously what everybody is focused on.

What the closing statement is

The closing statement comes in a couple of different ways. There is a government form, and then there was the traditional form that was used before the market crash.

Either way, a closing statement is the pluses and minuses of all the funds agreed on in the purchase agreement: the sale price minus any closing costs, which would include commissions and prorations. Prorations would be things like title insurance, your insurance, or your taxes. There are multiple things that go into that closing statement.

Get it 24 hours before closing

The closing statement should get to you at least 24 hours before the closing. Sometimes it cannot. If the lender is really far behind on their process and the closing is happening very quickly — the lender trying to get the information to the title company at the last minute, closing in the morning when the process was done at night — there can be a time where that closing statement is delayed.

But the goal is to have it at least 24 hours beforehand, so you have time to review the finances. Nobody wants you sitting at the closing table wondering what this charge is or what that charge is when it comes to the money. You should know how the money is exchanged, the check you are expecting to bring, or the check you are expecting to receive.

Key takeaways

- The deed is the most important closing document: the legal document filed with the county and the city transferring ownership to the buyer.

- The closing statement is the pluses and minuses of all the funds agreed on in the purchase agreement — sale price minus closing costs, commissions, and prorations like title insurance, insurance, and taxes.

- The closing statement comes as a government form or the traditional form used before the market crash.

- It should reach you at least 24 hours before closing, so you have time to review the finances.

- Sometimes it is delayed when a lender is behind and the closing is rushed, but the goal is always 24 hours ahead.

FAQ

What is the most important document at closing?

The deed. It is the legal document filed with the county and the city that says the buyer has purchased the home and the names are being transferred as the new owner.

What does the closing statement show?

The pluses and minuses of all the funds agreed on in the purchase agreement — the sale price minus closing costs, including commissions and prorations such as title insurance, insurance, and taxes.

When should I get my closing statement?

At least 24 hours before closing, so you have time to review the finances and know what check you are bringing or receiving. It can occasionally be delayed when a lender is behind on a rushed closing.

The Closing Series

1. Closing Table Intro

2. Show Me The Money

3. Buyer Side & Seller Side

4. Cash Is King

5. Closing Documents — you are here

6. Remote Closing Options

Watch me explain it

Here is an older video of me explaining the process. It might be older, but the info still rings true.

Watch on YouTube: https://www.youtube.com/watch?v=pSLbMYtZI3g

Author: Steve Volkers, Associate Broker, Steve Volkers Group at Five Star Real Estate, Grand Rapids, MI — phone 616-717-2179, stevevolkersgroup.com