The process of closing in California is asynchronous. It is not all in one day either. So the seller signs at one time, you sign at another, the money is funded by you and by the lender and when the escrow company has everything they “release” the file to record with the county. To flush it all out, the steps look like this:
- If you are getting a loan, you will receive an electronic document to acknowledge called the “Closing Dislcosure” or “CD” which is required by federal law to be acknowledged approximately three days before you are allowed to sign loan documents. This may have already happened.
- After your loan is 100% approved and all conditions are met AND three days have elapsed since you acknowledged the CD, the escrow company will receive loan documents for you to sign.
- Escrow will get the final closing figures from the loan documents and prepare a closing statement for you to review.
- Escrow will then prepare the loan documents and get them in the hands of a notary who you will meet at the escrow company or more likely at your home or other location of your choosing to sign. This signing is probably what you think of as “closing,” and it will take approximately 1 hour or less.
- The notary will return the documents to the escrow company, which will, in turn, return them to your lender.
- The lender will do a final review of figures and documents and fund your loan.
- Generally after you sign your loan documents you will wire your funds to the escrow company.
- When the escrow offer has everything, they “release” the file to record with the county. Generally this happens the next day or late in the afternoon of the same day.
- When the file is “on record” that means you are the new owner and you can take possession of the property.
Please always remember to call your escrow officer to confirm the wire instructions before wiring. We are here for you if you have any questions.
Onward to a smooth closing and the best part – where we get to give you your keys!!!