MORTGAGE – If you have a loan(s) on the property, the title company will ask your lender(s) for payoff figures for your loan through the day of closing (plus a couple of days after to allow for processing time). If your payment comes due in between the time they ask for that statement and the closing date, be sure to communicate with your escrow officer and real estate agent. If it’s highly likely the transaction is going to close and your loan will be paid off well before it’s considered “late,” you may choose to not make the payment. But if you decide to make that payment, be sure to advise the escrow officer so they can get an updated payoff statement from your lender reflecting that new payment. If you have your payments set up to automatically come out of your checking account, consider turning this off. Note: Not paying your mortgage doesn’t “save” you that amount because your payoff amount will be higher if you don’t make that payment.
PROPERTY TAXES – The title company has to make sure the property taxes are current to close the escrow. If there is an outstanding tax bill, the title company will charge you on a pro-rated basis through the day of closing. If your scheduled closing date is around the time that your tax bill is due, you may want to pay them yourself to avoid any late charges, but communicate this with the escrow officer so they can verify it and then give you credit for that payment. If your taxes are impounded as part of your payment but your lender hasn’t sent the payment by the day of closing, your lender is supposed to refund that to you after the loan is paid off.
INSURANCE – Be sure to notify your insurance agent after close of escrow that you sold your home, so they cancel your policy.
If you have questions about real estate, call me at (925) 240-MOVE (6683). Voted “Best of Brentwood” multiple times. To search the MLS for free, go to: www.SharpHomesOnline.com. Sharp Realty. #01245186