So, you finally closed on your new home. But, just as there was a closing process, there is a post-closing process. Many people are unaware of this step, as it is typically handled by the title company and involves clearing up discrepancies between documents. After closing, your mortgage file goes to the post-closing department of the title company. The title company processes your file and sends it to the Land Records Office for recording. Eventually, the title company forwards the Deed to you, the new homeowner, and the original Deed of Trust to the lending bank.
Why do you need to know this? Understanding the post-closing process might help you in choosing the right title insurance for you. It is the responsibility of the post-closing department of the title insurance company to pay off any existing mortgages and/or judgments on the property, obtaining releases for the associated liens and recording them to the Land Records Office. The post-closing department also manages obtaining and paying any outstanding utility bills. With condos, the title company submits the dues to the homeowner’s association along with the copy of the settlement statement.
Post Closing Tips for Homebuyers:
Keep All Documents Secure and On-Hand
- Always keep all of your closing documents safe. You may need them when you file your taxes or when you have to otherwise review your loan information. Many people misplace or lose their closing documents, creating more problems for themselves. Also, make sure you have your Owner’s Title Insurance Policy with your other closing documents. Some title companies provide this policy at closing and some may take a few months to send it to you. This policy is very important when you are trying to sell or refinance your property.
- Be sure to look at your real estate property’s tax bills and confirm if they are escrowed or not. If they are escrowed, make sure that the discount is properly applied. If you have waived the escrow account and are responsible for paying your property taxes directly, you should know when the property tax bills are due. You are still liable to pay the dues even though you didn’t receive them.
- While handling all your documents, double check with your lender that all property tax bills are paid. This applies especially to a Condo purchased with a separately taxed parking space. Some lenders neglect this and, creating an issue for borrowers.