The Settlement Process
Clients always ask what to expect at settlement. First, it is important to know what to bring with you to closing:
- A valid picture identification, such as a driver's license, military identification, or passport. Some lenders are now requiring two forms of identification to be provided at closing.
- You will also need to bring a certified or cashier's check for the total amount due for closing, or you can arrange to wire the money to us prior to settlement - please call our office for specific wiring instructions.
- If you are receiving funds through the transaction, please bring a voided check or wiring instructions if you want us to wire your proceeds to you. Otherwise we will overnight a check to your designated address.
How long does the settlement last? A refinance transaction lasts less than an hour.
Who conducts the settlement? Most closings are conducted by a licensed settlement agent or legal counsel.
Most clients are also very interested in how much everything costs and what documents are being signed at closing. One of the primary documents reviewed at settlement is the HUD-1 Settlement Sheet. This document outlines all of the charges to each party, including Lender's Fees, Escrows, Government Recording Charges, and the Title Company's Fees. After reviewing the HUD-1 and signing our documents, you will sign the Lender documents, which include the Note (which outlines the conditions of your loan) and the Deed(s) of Trust (a Security Instrument making the home the collateral for the loan's repayment). You will be given a folder with copies of the fully executed documents, or you can request an electronic copy for your files.
We also hear questions about what borrowers need to be prepared for after settlement. Several important events occur after the day of settlement to conclude the refinancing process:
- Most refinance transactions have a mandatory three day right of rescission - this means we can not proceed with recordation of documents and disbursement of funds until the rescission period has passed.
- Once any rescission period has expired, your new Deed of Trust will be recorded among the Circuit Court Land Records for the appropriate jurisdiction. This step alerts the public to the fact that you have placed new financing on the property.
- Once recording occurs, the next step is the distribution of all funds, whereby you receive any proceeds due and your previous deeds of trust are paid in full and closed.
- After learning that the documents have been recorded, The Settlement Group, Inc. also sends your lender(s) all the documents they require from settlement.
- Confirm that any Deeds of Trust paid off in the transaction have the necessary release documentation recorded in the Circuit Court Land Records.
- Scan your file into secure electronic storage for future access as needed.
Virginia Land Title Association extends a tremendous amount of appreciation to VLTA Member, Myrna Keplinger, Principal of the The Settlement Group for sharing all of the materials found under the Consumer section of this website. All materials are copyrighted under The Settlement Group and VLTA has received "reprint" permission for its use.