STA Specific Settlement Procedures
What happens at closing?
You will meet with a closing agent who will review with you a series of documents that have been prepared by your lender and provided to the closing agent the day of or before your closing. Many of the documents are non-binding notices and disclosures, which can be quickly reviewed and signed. But a few are key and legally binding. At STA these documents will be presented to you at the beginning of the process for your careful review.
Here is a list of these documents:
- HUD-1 Settlement Statement
- Sales/Broker Commission
- Items Payable in Connection with Loan/Fees/Points, Reports, etc.
- Reserves deposited with Lender/Escrows
- Title Fees & Costs
- Government Recording and Transfer Charges
What should I bring to settlement?
A valid photo ID, your checkbook for any overages, cashiers check in the amount of your Good Fairth Estimate and your paid Homeowner's Insurance invoice.
How many days in advance do I need to set up my closing?
By submitting all of the necessary information for closing, STA can close your transaction at your convenience, but at least a few days are necessary for STA to order and receive a title abstract and payoff information from existing lenders.
Who makes the appointment for a Refinance closing?
Normally the lender will contact STA to make the appointment. Since the lender prepares the loan package and most of the closing documents, the lender has a better idea of when closing can happen.
How much money do I bring if a final HUD-1 settlement statement is not available prior to closing?
You should bring a cashier's check for the amount listed on the Good Faith Estimate provided by your mortgage loan officer. If the Good Faith is an overestimate, we will provide you a refund at settlement. If the Good Fairth is an underestimate, in most cases we will accept your personal check for the difference.
Can I have my closing funds wired to your account? Do you have wiring instructions?
STA will accept wired funds. These funds MUST be received by STA prior to closing. The closing cannot be finalized until all funds are received, which could conceivably delay delivery of the keys to your new home. We suggest that you arrange to have funds wired for arrival at STA the day before closing. Please note that wired funds coming from someone other than a bank (such as a brokerage account) often require up to three (3) days prior notice to ensure that the wire gets sent out. Also, most companies that wire funds for you will require written authorization before sending the wire out. Be sure to contact your bank or brokerage well ahead of time to make the necessary arrangements.
Do I need Certified Funds? Who should I make the check payable to?
No, certified funds are not necessary. A cashiers check or bank check is sufficient. You should make the check payable to yourself and sign it over to STA at Settlement. This way if for some reason you don't settle, you will still have access to your own funds.
My last statement says that I owe $245,768.98. Why are you collecting $247,045.56 for my loan payoff?
The mortgage lender collects interest on its loan until it RECEIVES the payoff check. If you close on Thursday, record on Friday, and then overnight the payoff on Friday evening, the BEST case scenario is that it is received the following Tuesday. Because of weekends, holidays and unforeseen delays, STA calculates interest on the payoff through the 7th day after settlement (10 days on a refinancing because of the three day right of rescission). If the amount collected exceeds the amount due on the day the lender receives the check, they will refund the excess interest along with any escrowed funds.
A special note on FHA loans: FHA loans do NOT carry per diem interest. This means that if you close on the 30th of December, and your payoff is received on the 5th of January (impacted by the weekends and/or holidays) then you have to pay ALL of January's interest, not a pro-rated amount. If you close after the 25th day of the month and you have an FHA payoff, you can expect to pay extra interest on the entire next month.
Can I use a power of attorney (POA) for my closing?
YES, but you should review the following carefully:
- Any POA must be reviewed and pre-approved by (i) STA and, IF you are the purchaser, (ii) by your lender(s).
- The review of the POA should be done as soon as possible in case the existing POA is not acceptable, prompting the need for a new POA to be drafted and circulated prior to closing.
- The pre-approved ORIGINAL POA MUST be delivered to STA at or before closing, as we must present the original POA at the courthouse for recordation.
- A Special POA for the specific transaction is normally required in order to satisfy the title company insuring the transaction.
- If a General POA is pre-approved by STA for the transaction, we must collect and keep the ORIGINAL POA to be recorded at the courthouse. The original will be returned to you after recording at the courthouse, which may take a few weeks.
- Please be sure that STA has contact information for the person who will sign for you and be sure that person will attend closing. Also, it is wise to give STA and the person signing for you a phone and fax number to reach you during closing for any last minute issues.
- If you are the seller, be sure your agent or the person signing for you has the keys, garage door openers, any money due from you, etc., to deliver at closing.
- If you are the purchaser, be sure you make arrangements to have your purchase money delivered to STA at or before closing.
How long will settlement last?
Our settlements typically last about one hour.
How do we get our proceeds?
Once we have verified that all necessary title documents have been recorded, proceeds can be mailed or picked up in check form. We do not issue certified checks. If the payee wishes to have the funds immediately available, we recommend a wire transfer. (STA does not charge to send wires.)
Can you wire my proceeds to my bank, money market or stock account? If so, what do you need?
If STA is given written wire instructions, we will wire funds to your account for no additional fee; we cannot accept verbal wire instructions. Normally your funds will be wired to your bank within two business days after your closing. Please note that many banks do not actually credit your account with these funds until the day after the bank receives the wire. If we are to wire directly into a regular bank checking account, your wire information is normally shown on the face of your checks. If we are to wire to a brokerage or similar account, the wire instructions are more detailed and should be supplied by your brokerage firm. Normally, such institutions will fax their wire information with your account name and account number directly to STA, upon your request.
Why can't the sales proceeds or the commission check be disbursed at the table?
State statutes prohibit us from disbursing funds from the transaction until after all title documents (deeds or deeds of trust) have been recorded in the appropriate Circuit Court Clerk's Office. Recordation is not accomplished until such time as the settlement is complete, in other words, until all required funds are received by STA for the transaction, and all documents are executed by the parties according to the lender's instructions. Once settlement is complete, the title documents will be sent for recordation. We are not permitted to disburse funds until it has been verified that the documents have been properly recorded. The recordation process can be time consuming, and depending upon the jurisdiction and the circumstances recordation can take anywhere from a few hours to a few days.
When can I take possession of my new home?
In most cases, the purchaser takes possession of the property on the day of closing after all documents have been executed and recorded and all funds have been disbursed.
When will I receive the keys to my new home?
Your realtor or builder will see to it that you receive your keys on the day of closing unless other specific arrangements have been agreed upon.
Who can I call if I have other questions?
Call any of STA's conveniently located offices throughout Virginia. Our expert staff will be happy to assist you.