Closing is the very last step in the process of buying or selling a home.
It’s also the most important step. Without all of the necessary paperwork signed at closing, no real estate transaction would be complete.
In the midst of a move, things can be very chaotic for both buyers and sellers, which is why it’s important that you come to closing prepared. Here is what you need to bring to closing when you buy or sell a Knoxville home.
Two Forms of Identification
Bringing a form of identification to closing may seem obvious; however, in the process of a move, it can be easy to forget to bring identification or the correct form of identification.
Generally, only one form of identification is needed at closing, but there are some mortgage lenders that require two forms of identification be presented at closing. So, as a buyer, it’s best to be prepared and have two on you at closing so you’re not left scrambling.
You’ll be required to show a government issued form of identification. Here are a few examples of acceptable forms of identification in this category:
- Driver’s License
- State Issued ID Card
- Passport
- Foreign ID Card
- Military ID
- Social Security Card
In addition, if a secondary form of identification is needed, you’ll need to present a form of identification that has your name on it. Here are a few examples of acceptable forms of identification in this category:
- Property Tax Bill
- Utility Bill
- Recent W-2
- Voter Registration Card
- Insurance Card
If you’re unsure about if a form of identification is acceptable, be sure to check with your title company or mortgage lender prior to closing.
Funds For Closing
Fund for closing are also another essential item to bring to closing. Oftentimes, buyers or sellers will bring funds for closing in an improper form.
On the day of closing, we will be disbursing on many different items associated with the transaction including payoffs, proceeds, and commission checks. It is essential that all funds for closing are good on the day of closing, which is why we cannot accept personal checks or cashier’s checks over the amounts listed below. Cashier’s checks and personal checks can take up a few business days to clear. This why in certain cases we require wires, which are good on the day of closing.
In order to make things easier on you, we’ve outlined our policy on closing funds for you below.
- Personal checks are acceptable for amounts below $1,000.
- Cashier’s checks or certified closing funds are acceptable for amounts below $20,000.
- Wires are required for all closing funds of $20,000 and greater.
- Wires are required are on all cash transactions.
- If you’re closing on another home with another title company before your purchase, you’ll want to contact us about having that title company wire us your proceeds.
Checks
If you’re bringing a personal check or cashier’s check to closing, the check will need to be made out to Title Group of Tennessee.
If you need to get a cashier’s check a few days prior to closing, we always suggest you get it for $500 more than your loan estimate that way there is enough cushion if something changes. We are always able to refund you back at closing or accept a personal check for the difference.
Wires
Bank wires are required for any closing that is bringing $50,000 or more to closing. Or, if you’re buying a home with cash, we’ll require a wire regardless of the amount.
You can contact us directly for our wiring instructions. You’ll just need to take our wiring instructions into your local bank and they can set up a wire.
Be sure to check with your bank about how quickly a wire will go out on the day of closing, so you can time things accordingly.
Funds From Another Closing
If you’re closing on another home with another title company, we will require that those funds be wired to us.
The main reason for this is that checks issued by a title company are the same as a personal check. If you’re bringing more than $500 to closing, you’re bringing funds that are in an unacceptable form.
Planning Ahead
It is also important to remember that if you’re coming from out of town, you may want to make arrangements for closing funds in advance, that way you’re not scrambling at the last minute.
Any Other Last Minute Items
Oftentimes, there are a few last minute items that are exchanged at closing. Things like garage door openers, keys, and other items are often exchanged between buyer and seller at the closing table.
Prior to closing, you may want to check with your realtor if there any last minute items that you may need to bring with you to closing.
In addition, you may also want to check with your mortgage lender to see if there are any last minute items you need to bring with you at closing. Occasionally, they will require one last item like a pay stub, tax return, or gift funds letter to be brought to closing.
In these cases, it is best to be prepared than to be left scrambling at the closing table.
Are you in the process of buying or selling a home in the Knoxville area? Title Group would love to assist you in any way possible. You can reach us at 865-392-5801 or via email at orders@titlegroupoftn.com.
Title Group of Tennessee is a full service Knoxville title company. We specialize in Knox, Sevier, Loudon, Blount, Jefferson, and surrounding counties. Title Group of Tennessee is ALTA Best Practices Certified since October 2015.