Questions Everyone Ask Before Closing (Answered by a Title Company)

Buying or selling a home? Chances are you've asked at least one of these questions before closing.

In this episode of Beyond the Closing Table, Tab and Katelyn answer the top questions buyers and sellers ask every day. From what a title company actually does to why title insurance matters, how much money to bring to closing, when you'll get your keys, and what can delay your closing, they break it all down in a simple, easy-to-understand conversation.

They also bust common closing myths, play a fun round of "Would You Rather," and share behind-the-scenes stories from real closings that show why every transaction is different.

Whether you're a first-time homebuyer, seasoned seller, real estate agent, or investor, this episode is packed with practical advice to help you feel more confident before closing day.

In this episode you'll learn:

•  What a title company really does 
•  Why title insurance protects your investment 
•  How much money to bring to closing 
•  What "Clear to Close" actually means 
•  When you get your keys 
•  Common closing delays and how to avoid them 
•  The biggest mistakes buyers make before closing 
•  Answers to the questions everyone wants to ask but doesn't 

If you've ever wondered what really happens behind the closing table, this episode is for you.

Transcript

SPEAKER_02 0:20

All right, we are on air. Testing, testing, testing. Okay.

SPEAKER_00 0:27

Welcome to Untitled, the podcast that takes you beyond the closing table, where we're talking about life as it really is, the work wins, the personal chaos, and the messy middle where the two worlds collide.

SPEAKER_02 0:40

From deal drama to daily life, we're showing up for it all with stories, strategies, and the kind of honesty this industry doesn't always have time for.

SPEAKER_00 0:49

If you wear too many hats and still forget where you left your keys, you're in good company. This is Untitled. Nope.

SPEAKER_02 1:01

Alright, let's jump right into it.

SPEAKER_00 1:05

Okay. Jumping.

SPEAKER_02 1:08

Yeah. Belly flop, more like it. All right, let's jump right into it. Today we are answering some questions that people have either asked us or submitted to us. Okay. Um, and then all the questions. And some of these are probably questions that everybody's had, but they're just either too afraid to ask or they're just like at the closing table and ready to be done.

SPEAKER_00 1:40

Well, hey, and now if people are sending in questions, maybe more peeps will send in some questions. Yes.

SPEAKER_02 1:47

So some of these questions are practical, some are myths, some could save you thousands of dollars. Or even save your home.

SPEAKER_00 1:56

Save your home and your kids.

SPEAKER_02 1:59

Save your home and your kids. Save your whole family. Why is that like a protect your family?

SPEAKER_01 2:06

Remember that video not too long ago?

SPEAKER_02 2:09

How'd your kids, how'd your walk?

SPEAKER_00 2:10

Yes!

SPEAKER_02 2:11

I do remember that.

SPEAKER_00 2:13

Is that a Tennessee thing?

SPEAKER_02 2:16

Uh I don't know. I think it was national news. I think it made national news. Um, so whether you're buying, selling, or just curious about what happens behind the scenes, this episode is for you.

SPEAKER_00 2:27

Is for you, my dear.

SPEAKER_02 2:29

I'm Caitlin Sang.

SPEAKER_00 2:31

And I am Tab King, your title queen. Oh. I thought it was closing queen. Title Queen. Title Tab, Title Queen.

SPEAKER_02 2:40

Got it. Title Queen. Okay. We might go rogue a lot today.

SPEAKER_00 2:49

Um we've had a great two days.

SPEAKER_02 2:52

Yeah. Have either submitted to us or asked at the closing table or emailed over. Just different questions that we have encountered of late that people might be afraid to ask at the closing table.

SPEAKER_00 3:04

Yes. And never, never be afraid to ask questions.

SPEAKER_02 3:10

No, always ask questions.

SPEAKER_00 3:12

I'm excited.

SPEAKER_02 3:13

Okay, so I'm just gonna jump into it and ask the question that everybody always asks.

SPEAKER_00 3:22

Mm-hmm. I'm glad we've been getting questions.

SPEAKER_02 3:26

Yeah. Um, and then this is questions are whenever you're like, I mean, even when you're out networking and you're like, what do you do?

unknown 3:33

Uh yeah.

SPEAKER_00 3:34

I mean, it's like what you practice in the mirror.

SPEAKER_02 3:36

Yeah.

SPEAKER_00 3:37

So be ready to say what it is that you do for sure. Know your value.

SPEAKER_02 3:43

Yeah. So number one question that probably every title company or title agent gets is what does a title company actually do? Let's say it together.

SPEAKER_00 3:56

Protect property rights.

SPEAKER_02 3:58

I was like, I thought you were like, say it together, ask the question again.

SPEAKER_00 4:03

I mean, that's the easiest way I explain that to someone. Yeah.

SPEAKER_02 4:10

I mean, at the end of the day, that is literally our main job.

SPEAKER_00 4:16

Our main job is protecting your property rights, providing you peace of mind. Yes. But I bet people think what? What's the biggest myth?

SPEAKER_02 4:25

Um, I think the biggest myth is that we just handle the paperwork. Or just paper pushers? Paper pusher. Um, but I mean, really, like, they don't know what all the paperwork says.

SPEAKER_00 4:38

Yeah, behind the scenes, when you get to that closing table, like if if we are doing our jobs correctly, like you're like, huh, this was easy. Yeah. You know, like this was so easy, which is what makes us smile, makes our heart warm. But like, if if you know, everyone knew what it took to get you to that closing table, because we are, I mean, it starts with research. Yeah. We are researching land records, property records.

SPEAKER_02 5:10

Yes, that's the number one thing. That's the first. Once you get a contract, that's the from the get, like you're beginning the title search of the property.

SPEAKER_00 5:19

Yeah, we've got to make sure, you know, the current ownership is valid so that they can convey it to you.

SPEAKER_02 5:27

You mean that we make sure that the people who's listed on Zillow is actually the owners of the property?

SPEAKER_00 5:35

Absolutely.

SPEAKER_02 5:36

And they're not, especially if we are insuring it. And they're not just some fraudster in their grandma's basement or their mama's basement.

SPEAKER_00 5:45

But I mean, okay, so so yeah, so all of those things, right? But so when you when you're protecting property rights, that begins with, you know, researching the ownership. That happens with the title search. But what about all the other things? Coordinating closing. I mean, we are the escrow agent as well, so we're handling all of the escrow funds. That means all the money.

SPEAKER_02 6:13

Yeah. Receipts, disbursements, all day long, all day long, and communication. I just don't even think that people know how much communication goes into the whole process continuously.

SPEAKER_00 6:27

I mean, you know, this was years ago. The average time spent on a file was like 20 hours per one file.

SPEAKER_02 6:39

And that's probably just a standard file. That's probably not like a problem.

SPEAKER_00 6:42

And that was years and years ago. I mean, like a long, long time ago.

SPEAKER_02 6:45

Right.

SPEAKER_00 6:46

And so that doesn't even factor in, you know, all the technology. The new, you know, the new risks that, you know, plague our industry and change.

SPEAKER_02 7:00

Yeah. So not only do we search, we do the title search, we coordinate the closings, we do the paperwork, we do work do the funds, like, you know, we handle the escrow. At the end of the day, we're also, you know, dispersing, making sure those um all the record or the all the deeds get recorded correctly, and then we still have to issue that title insurance policy.

SPEAKER_00 7:26

Yeah, and coordinating and closing like real estate's not a solo sport, right? It take there's a lot of players.

SPEAKER_02 7:34

That's not even to talk about the time it goes into the FedExing and the swapping of the docs and everything else, the couriering.

SPEAKER_00 7:42

All to get your title insurance policy issued. Right. When we say we're your people, we are your people. Yes. Because we are, I mean detectives. Yeah, I mean detectives, investigators, researchers, um delivery men. Couriers. That's a hard word for me to say. Um, yeah, but I mean, our main goal is to protect your property.

SPEAKER_02 8:08

Yeah, the two biggies are definitely protect property. The two biggies are definitely the issuing the title insurance and protecting the property rights. Because at the end of the day, that's what matters most.

SPEAKER_00 8:20

Beyond the closing table. Beyond the closing table. Because your policy covers you. Oh, that's not hopefully that's another question, but your policy covers you far beyond.

SPEAKER_02 8:31

You and your heirs.

SPEAKER_00 8:33

Yes. Yeah, beyond the closing table.

SPEAKER_02 8:36

Um, I think a common misconception, this is just um something that we hear a lot of um when you're dealing with people every day, yeah. Um, is that title insurance is a new concept, and it that's just not true. You know, you hear people all the time saying, Oh, well, when I bought this property 50 years ago, we didn't have to do all this. There wasn't title insurance back then. And I'm like, wrong, wrong, wrong.

SPEAKER_00 9:06

You know how fill that is.

SPEAKER_02 9:07

Title insurance has been around since 1876.

SPEAKER_00 9:10

1876. Okay, hit us with your knowledge.

SPEAKER_02 9:14

Okay, so 1876 is when title insurance first came about. Alta, which is America's little America. I can't taunt today. American Land. Land. Land. I'm gonna have fun editing this. This is all my fault. Um, Alta, which is America.

SPEAKER_00 9:37

American Land Title Association.

SPEAKER_02 9:39

Why not keep saying America?

SPEAKER_00 9:40

America.

SPEAKER_02 9:42

American land.

SPEAKER_00 9:44

You're still in, I mean it's still July. You're still in that 4th of July. You are okay.

SPEAKER_02 9:49

Can you tell us about can you tell us when Ulta came around? What's Ulta?

SPEAKER_00 9:53

It had to be the 1900s.

SPEAKER_02 9:56

It was 1907 when Alta was formed. And that was a year before NAR.

SPEAKER_00 10:06

Which is the National Association of Realtors. You heard it here first.

SPEAKER_02 10:10

Alta was a year before National Association of Realtors.

SPEAKER_00 10:15

So title was in place before Realtors and agents. It makes sense because land has been here since the beginning of time.

SPEAKER_02 10:24

Yeah, exactly. Um so that that was my title, High Horse.

SPEAKER_00 10:30

I love this. Oh my gosh, did you have so much fun researching them?

SPEAKER_02 10:34

Yeah, no, it was like I started reading and then I couldn't stop.

SPEAKER_00 10:37

Yeah.

SPEAKER_02 10:38

Um, but yeah, it's a common misconception that title insurance is a new thing. It's not.

SPEAKER_00 10:43

It is not.

SPEAKER_02 10:45

Maybe you're just hearing about it more.

SPEAKER_00 10:48

Yeah, and I mean a lot of the players on the team of a real estate transaction may not be as familiar with title. And so the misinformation um comes forth.

SPEAKER_02 11:02

Just because you speak the loudest doesn't mean you're the most accurate. That's right. Okay, so a second question we get. Okay. After what is it? Why do I need it? Why do I need title insurance? I feel like at this point, I want to be like, why would you not want title insurance? Because we've seen so many scenarios and situations. And what was it, Dave Ramsey, that he said anyone who owns a home or is buying a home must buy title insurance.

SPEAKER_00 11:34

Absolutely. He is a very big advocate for title insurance.

SPEAKER_02 11:37

He is, and if he's also a very anti-Starbucks guy. So if he is promoting title insurance over Starbucks, then you know you need it.

SPEAKER_00 11:47

Hey, and listen, we hear our investors in here all the time. Yes. That do multiple, multiple transactions, sometimes in a day. I mean, they're like, once you get burned, I mean, what is it that I always say I have to think about this like preparation is silent until it's missed.

SPEAKER_02 12:05

Yeah.

SPEAKER_00 12:06

Or something like that. Like, I mean, you need title insurance because title insurance is protecting, it's like the only policy that goes backwards, like it's protecting what's already happened to the land. I mean, there's also protections going forward, but it's just different than most insurances.

SPEAKER_02 12:26

Yeah.

SPEAKER_00 12:27

And again, if you're gonna insure your cell phone, your car, your vacations, your vacation, your TV.

SPEAKER_02 12:39

Yeah.

SPEAKER_00 12:40

It's like why would you not get a policy on your property? On your property.

SPEAKER_02 12:46

Um, I feel like once you're in it, like it and it being real estate, I feel like you will never not get title insurance because you've seen so many scenarios that you would not believe. I yeah, I mean it's um I mean, we could sit here all day and say forged deeds, unpaid liens, recording mistakes, unknown errors, on and on and on. But like that's reality. Those really do happen, and it's more common than you think.

SPEAKER_00 13:14

And I think it's important to mention this too, because it doesn't matter if you know everyone in that chain of title over the past 20 years or whatever, you know, and and the property has changed places and they're like, oh, they got a policy. It doesn't matter, things can get recorded post post closing and you know, incorrectly. So your title policy is protecting unknown heirs, forged deeds, liens. There's always um a search on unpaid liens, and that could be judgments, that could be old credit card. Um, be I mean, people's bills get lost in the mail. I mean, I mean, it's happened to me. You know what I mean? Like, bills get lost in the mail. I don't know. Like, it's there's just so many things. Unpaid liens, recording mistakes. I think it's important here and help me articulate this correctly. But like, there is a product out there that is being sold, and it is just a monitoring service, it monitors your title, and you can sometimes go onto the register of deeds in this in the county or state. Um I was in a meeting about this yesterday, and you can sign up for an alert at no charge. Monitoring your property is not protection.

SPEAKER_02 14:42

I like to think of it as what you're talking about as the ring camera. Yes. You your ring camera can catch the people breaking into your house and stealing your stuff, but it's not gonna do anything for you or to the correct.

SPEAKER_00 14:56

So, again, you know, safeguards going forward, you know, post-closing, you need a policies that's gonna cover.

SPEAKER_02 15:05

Yeah. Um title insurance will actually help you fix the problem. Yes, not simply tell you it's there. Correct. What you're talking about, and I cannot even think of it to save my life. Well, I can't, I'm not gonna say it.

SPEAKER_00 15:20

Yeah. But it's called a monitoring service. Well, it's not called that, but that's what it is.

SPEAKER_02 15:29

Yeah. Okay, well, that makes sense. Um I always like your force field analogy that you use. Oh, yeah.

SPEAKER_00 15:36

Title is the force field.

SPEAKER_02 15:38

Yeah.

SPEAKER_00 15:39

So if you can just imagine like an invisible barrier around your property, that's what title is title insurance. Got all these things coming at you.

SPEAKER_02 15:53

We know like bing, bing, bing.

SPEAKER_00 15:54

Yeah, it's like not today, baby.

SPEAKER_02 15:58

Um not today. So, I mean, if you can thank it, it's happened. So, like, generally, like just trust us, you would much rather buy that one time policy premium or pay for that one-time policy premium than to have to fight off any title insurance problems on your own in the future.

SPEAKER_00 16:21

Example, today, closing church.

SPEAKER_02 16:24

Oh, yeah.

SPEAKER_00 16:25

We had a a church, um, a religious organization, which is a whole set of requirements, right? Alone. Um, and I could deep dive into that, but I'm gonna try to keep it title 101. I'm not good at Title 101. Title 10. Um, but you know, uh, there was representation that when we were going, okay, we need to know who has the authority to sign off for this church because there's a lot of different layers. And hey, the the representation bowed out and said, I'm gonna let you handle it. Right. Okay, because if and we were representing the buyer, we were issuing that policy, and if we had not had the proper signatures for the person that we had verified to sign off and convey that property to our new buyer, then any member of that church could have come back at any moment now, 10 years from now, 50 years from now, and said, and that uh I've got interest in that property. Crazy. And it would have been an issue, a huge issue. So, you know, you have to go back and make sure, and just using a church as an example, and this is again, I'm trying to keep it 101, title 101. Like you've got a church who hopefully has a board of directors or an operating agreement or an organ organization documents that literally outline who has the powers, the powers that be to sign, convey, mortgage all the things. And if not, all the members of that church have got to come together. Wednesday night business meeting. Okay, we are in the Bible belt. I'm sure we've all been to one. You know what I mean? But I mean, that's just a great example of just, I mean, it happened today.

SPEAKER_02 18:37

Ugh, that just brought me back. Like, some of the church business meetings were like some of the most drama-filled. Fun. It's like, oh, Miss Judy's getting an attitude.

SPEAKER_03 18:51

The elders, okay.

SPEAKER_02 18:53

Um, okay. Another question that we get a lot every day. Okay. Is always about money. Right? Funds to close. Funds to close. How much money do I have to bring to closing? Do I uh get to bring a a cashier's check, a personal check, um, a box full of dollar bills, I don't know, a wire. Bitcoin. Bitcoin. Yeah. That was also last week. Literally. Yeah. Aye, aye, yay. So it's just okay.

SPEAKER_00 19:30

Can I just say this? If you're buying a home, assume you're bringing money. Assume you're bringing money. I mean, and there are those awesome deals that happen where there is no funds due at closing. That's great. That's wonderful. Congratulations. You're gonna know it uh before you get to closing. But let's just assume I'm buying a house, so I'm gonna need to bring funds. And our agency lets you know from the get, from your intro, how that's gonna happen. Um, but you know, let's just think of it in terms of what's gonna make the process smooth. It's gonna be wires, right? Wires have money come into your account instantaneous. That means your loan funds if you're financing, that means your cash funds if you're not financing, whether that's your earnest money. Um, you know, those can be off sent in via wire, and it's just money that's there instantaneous, so you're not waiting on checks to clear or all that stuff.

SPEAKER_02 20:44

And you can't even pay for you can't even use a check at a store anymore, like or at a gas station. Honey. At the Pigley Wiggly.

SPEAKER_00 20:53

I got scolded at Opry Land Hotel. For using a check? No, last was last week when I was at National's, which my daughter, national champion. Again, again, go, sweetheart. Anyhow, um, I am at Opri Land Hotel, which is huge. I was there for I don't even know, all day and night. You know how I am about my cards. I keep them locked. I'm in a hotel, so I'm even more like cautious, like keep my cards locked because I don't want to get hacked and all that good stuff. Because guys, it happens to me more than I've spent too much time disputing charges. Anyhow, get my cash out to get my coffee. She's like, no, uh-uh, we don't take cash. And I was like, Oh. And I needed coffee. Okay, because I don't think I'd had any or I'd not had any since 4 a.m. And I was like, what? What did you say? It is a cashless society. I don't really don't. So then I go to the um what is it called? Aubrey Mills after just to kind of take a break. And we did some walking and did a little shopping. Right. Stop to get some pretzels.

SPEAKER_02 22:12

No way.

SPEAKER_00 22:13

It was not at the end. Four dollars. Four dollars. I'm like, oh wait, let's get me out of such a guy. I was like, oh I got four dollars. I got correct chains. She was like, ma'am, we don't accept cash. We're cashless. At the pretzel stand. At Opry Mills Hotel. No store takes cash. Or yeah, no. She said cashless. Crazy. At that point, I just didn't even try anymore. I'm like, I've got to get out of here. But and I used my card at the other stores. But I mean, like, honestly, like it's you're not gonna be able to bring a briefcase of cash.

SPEAKER_02 22:51

No, don't expect to be able to bring cash to closing. Don't expect to get cash at closing.

SPEAKER_00 22:56

And that's happened to me early in my career. This man walked in with a whole briefcase of a hundred thousand dollars. And I'm like, who's taking that to the bank? I'm not being responsible. We couldn't accept it anyway, but if you're just thinking like logically, like No.

SPEAKER_02 23:15

No. The answer is no. Yeah.

SPEAKER_01 23:17

Um do you go to a car dealership? Do you with just like a briefcase full of cash?

SPEAKER_00 23:25

I've went with a check before, but not cash. But that was years ago. I don't even think you can do that anymore. I mean, there's usually good fund laws.

unknown 23:33

Okay.

SPEAKER_00 23:33

Anything over a certain amount needs to be a wire transfer so it can be traced.

SPEAKER_02 23:37

Well, honestly, I went to buy a car, but also several years ago. And I went to get the cash out of the bank to put the down payment, and you can't even get out enough cash of one bank. Yeah, there's a limit. A lot of banks have limits.

SPEAKER_00 23:51

Yeah, and it's because of all the fraud. Yeah. Oh. So safeguards are in place. But the thing is, when you get to closing, it's very um, I don't want to use the word frustrating. But I'm gonna use the word frustrating because there's more than one party to a contract. Yeah. A buyer's buying and a seller selling. So the buyer wants the keys, the seller wants their money to give the keys. Exactly. So let's think about this because a lot of times you may have it tied up in, you know, an IRA or some type of account that you've got to pull money from. And sometimes that can take three to seven days. Yeah, we've seen it. It happens a lot. I mean, it doesn't happen so much for us and our customers. Um we have seen it happen. But we have seen it happen a lot. So, um, and you know, and there are some times when you can bring a cashier's check. Yeah. And there are some times when it's five dollars and you can write me a check. You know what I mean? But like it's something to be top of mind.

SPEAKER_02 24:56

Yeah, situational.

SPEAKER_00 24:57

And you're gonna get a closing disclosure or a settlement statement to see exactly what that amount is. Yeah.

SPEAKER_02 25:03

Prior to closing if you have a good title company. Yes.

SPEAKER_00 25:07

We always want that settlement statement sent to you or sent to your agents for review, your lender for review, the investor for review, and then ultimately to you. All right, the customer. Yes.

SPEAKER_02 25:22

Okay, so a lot of first-time home buyers want to know when they can spend money again because they are on high alert, not spending, not signing up for anything. Like, don't touch the bank account. Once they get the clear to close, can they spend their money?

SPEAKER_00 25:40

Don't even make deposits that are cashed or not traceable.

SPEAKER_02 25:44

So, can they spend money after clear to close? No. I wouldn't, I wouldn't spend money until I was I had the keys in my hand. The keys and it was funded. Yeah. Because we've seen it all.

SPEAKER_00 25:56

We've seen finance furniture, cars, or selling furniture and then depositing that money if you're selling and buying, like it's just I would just scrutinize very carefully.

SPEAKER_02 26:12

Ulta card or whatever it is. And it's just so easy just to say yes to get the discount or the points, but that is gonna be a dinger on your credit report.

SPEAKER_00 26:21

And a lot of times, um, which you know, we're not loan officers or lenders, but a lot of times they um rerun your credit right before closing to just make sure you do not have any new debts or liabilities. Yeah. And just don't do it. I and this is your this is what you say. I'm in the process of buying a home.

SPEAKER_02 26:41

Don't touch anything.

SPEAKER_00 26:42

Yeah, I am not I am not accepting your offer today.

SPEAKER_02 26:45

No, no, thank you. They're like, oh, congratulations. Um, okay, so I'll get I've gotten this one recently. Uh, why did my closing costs change? Many reasons. Many reasons.

SPEAKER_00 27:03

Yeah, and I mean, what why would you think that that do you think that's very common? Um it's common for us because we're going back and forth with the lenders and the realtors.

SPEAKER_02 27:16

Yeah.

SPEAKER_00 27:16

Not so common. I don't think it's for for a buyer. A buyer or seller, unless your closing date changes changes.

SPEAKER_02 27:24

Unless your closing date changes, unless, you know, your homeowner insurance, like you get a different, I don't know, an estimate and the final. I don't know. I'm just thinking of different scenarios. HOA. That could be a audience.

SPEAKER_00 27:39

Are we different about closing costs or like the time that they get a prelim quote?

SPEAKER_02 27:45

Um, I feel like probably from the time okay, let's just say it's this when they get their initial CD three days before closing. Uh-huh. And they might have one, when they get disclosed or whatever, whenever it gets disclosed, they might have one fee, and then that's before the lender balances with us. They might not have the HLA transfer fees, the tax prorations correct. They may not have, I don't know, an invoice that needs to be added. Intrence. An admin fee for the real estate agent. Like there's just different scenarios um in which that would happen. Or say there's a propane tank and they need to pay those probations or um a payoff. Like say they have a credit card they have to pay off and the credit card payment changes, or just different stuff.

SPEAKER_00 28:32

Yeah, I mean, I think there's always reasons why. Um, and you know, important here is your quote at the beginning or your loan estimate or your net sheet is a quote.

SPEAKER_03 28:44

Yeah.

SPEAKER_00 28:45

Um, that's before title accumulates all the things. Payoffs, payoffs are almost always a little bit more than what the uh invoice you're getting in the mail. Yeah. As a homeowner, they always add their payoff fees and all that type of thing. Um, prepaids, you usually know what those are. Insurance, you should know what it is, but if you change, like you said at the last minute, interest changes based on closing date, tax probations change based on closing date, and updates. We have to do title updates. So if we get back and taxes are unpaid or HOAs unpaid or lapsed, um, that could change.

SPEAKER_02 29:29

Yeah, that's why I'm always extra cautious when sending prelims. I always stamp that draft on it. Or I used to stamp a draft. Now I do the watermark, I do the preliminary watermark.

SPEAKER_00 29:41

Because you learn when you do that one time not to ever do it again. Yes, ma'am. Oh, I've always been a stickler for that. Yeah, you make sure it's a quote.

SPEAKER_02 29:50

And I mean, I got a good one too, a good example for changing closing costs. Um, amendments being signed.

SPEAKER_00 29:57

Amendments, yes. Well, that gets into seller credits.

SPEAKER_02 30:01

Yeah, right. Seller credits, yeah. There's just many reasons.

SPEAKER_00 30:05

I mean, it needs to be all hands on deck, right? When you're reviewing, when you've got a contract in and you're getting that settlement statement done, we are crossing our Ts, dotting our I's, then we're sending it to the realtors for review. Um just to make sure all those things are in place.

SPEAKER_02 30:25

And if you're an agent or, you know, and your customer wants an estimate, I would be very direct with them that this is an estimate. This is not the final, this will change. Maybe for the better. Maybe for the better, it'll change, you know. True. Um, okay, another one that gets people a little heated.

SPEAKER_00 30:46

Okay.

SPEAKER_02 30:47

Why can't I get my keys? Oh.

SPEAKER_00 30:50

Oh, we talked about this a little already. Why are those funds to the closing date or to the closing before?

SPEAKER_02 30:58

Can I not get my keys immediately? Yeah. I've wired my funds, I've signed my paperwork. Where are my keys?

SPEAKER_00 31:06

Mm-hmm. And we lean a lot on the realtors to handle these situations. Um, in a perfect, and I always tell people at closing, in a perfect world, um, we are gonna get to the closing table, the seller's gonna sign, the buyer's gonna sign, we're gonna get funding approval right away, which means the lender of your financing reviews all your documents before they send the loan funds. Now, all do not do this, but a lot of them do. And everything, everybody's gonna show up on time, wires are gonna get sent out.

SPEAKER_01 31:43

Everyone closes at the same title company.

SPEAKER_00 31:45

Everyone closes at the same title company in a perfect world. But let's go ahead and set expectations. And a lot of times, which we work with a lot of great professionals in this industry, realtors and agents, and it's just kind of always setting expectations. Like if we close at 4 p.m. on a Friday, you know, funds may be here, but the wires out, like the seller proceeds and may not get out on Friday afternoon. Right. And there's wire cutoff times. And so we got to make sure that everybody's aware of that so those buyers can still get their keys, even though we got money in escrow and it's not like in the seller's hands. But hey, people are every file's different. Sometimes the seller, or you never know what the situation's been going through that contract process. And they're not always, everybody doesn't always get along. No, it could be last-minute repairs, or could be last-minute issues at the walkthrough, and they're like, they are not getting the keys. The seller could say, they are not getting the keys until the money is in my hand.

SPEAKER_03 32:56

Yep.

SPEAKER_00 32:57

So, Realtors, give us a heads up.

SPEAKER_02 32:59

Um, also talking about, you know, you said Fridays, four o'clock closing time. That just reminds me, like, it never fails on a three-day weekend. Oh man. It never fails. There will be some kind of funding hiccup. So if you are scheduling your closing on a Friday before a three-day weekend, schedule it for 9 a.m. I mean, right, we are all for hey, better yet, move it to the Thursday before.

SPEAKER_00 33:26

Yeah, if if and and a lot of times, like I said, we work with great um professionals in this arena. They usually give us a heads up like, look, keys aren't getting given to the buyer until funds are dispersed. And so that is our goal. We want to get the file funded as as fast as we possibly can. Um, but you don't get your keys immediately because you gotta have funding. Um, and you usually have to have lender authorization before you can fund.

unknown 33:59

Yeah.

SPEAKER_00 34:00

Then you gotta record the documents.

SPEAKER_02 34:02

It's just a process. That's what you always like to say. It's a process.

SPEAKER_00 34:05

Um set expectations.

SPEAKER_02 34:08

This is one we get a lot too. Um, I'm probably saying that on everyone, but it's true. Um, people will call in and they'll be like, hey, I have a contract I'm gonna be sending you today. How long does it take to close it? It depends. Is it a finance transaction? Is it cash? Is it in a rural area? Is there title issues? Is it an estate? Is there a mobile home? Is there I don't know, squatters that live in the property? Like, it depends. We do not have one concrete answer for that.

SPEAKER_00 34:44

No. And about as concrete as you're gonna get is if I get title in and everything is clear, it's gonna be seven to ten days.

SPEAKER_03 34:54

Yeah.

SPEAKER_00 34:54

And that's usually if it's cash. There's no HOA, or you've already got the HOA, or there's no payoffs. Right. Um, but we can absolutely throw you a timeline. And I usually say a couple weeks, and then if we get it back and we can close it in three days, exceeding expectations. Exceeding expectations, but I like to um underpromise, over deliver. Yeah, but on a normal contract, we do see like a 30-day yeah, there's processing times for a reason because you have inspections, which is a huge thing. I think it's been since COVID. A lot of properties didn't have home inspections back during COVID, and now everything has a home inspection.

SPEAKER_02 35:44

And I would hate to see what my home inspection would say because I said wave that home inspection.

SPEAKER_00 35:51

I did too.

SPEAKER_02 35:52

I feel I'm not I feel like when I bought my Oh, I did because I was like, there ain't nothing that's gonna make Josh say no to this.

SPEAKER_00 35:58

Yeah, that's right.

SPEAKER_02 36:00

I was like, uh-oh.

SPEAKER_00 36:01

Um, but yeah, I mean just give us a call. Well, let's talk through it because it's there's different factors.

SPEAKER_02 36:08

Yeah.

SPEAKER_00 36:09

And we've got timelines for all.

SPEAKER_02 36:11

There's just not a but we're not gonna drag our feet for no reason.

SPEAKER_00 36:16

No, we are very proactive. We live in proactive land.

SPEAKER_02 36:20

Okay, and we see this about twice a year. Uh, we have someone that asks to read everything before signing. They want us to send a copy of their closing package before signing. Um, and you know what? We prefer that because if we do, if you're gonna sit there and read every, you know, single word of a hundred-page closing package, then by all means you can read it beforehand because I mean it's literally a book.

SPEAKER_00 36:50

Yes, I prefer sending you everything before closing. Yeah. And it's really great now that we have these, um, they're called hybrid packages. Yes. There may be some other names for them, but um, a lot of times the lender sends you the closing docs prior to closing and a portal. So the closing package size has been reduced over the past few years.

SPEAKER_02 37:16

I mean, there are different preferences. People will come in and they're like, mm-hmm, I've sent in my money, like, show me where to sign, I've got to get to the house and move in. Like, and then we have people who, you know, it's their first time buying a house, a home, and they want to know everything. Yeah. And either one's fine.

SPEAKER_00 37:35

Or they're like, or I'll hit the highlights, like, you know, the note says this that, you know, here's your payment amount, here's when it's due, here's your late fee, if it's ever past whatever date, the 15th, here's your mortgage, you know, hit the highlights and they'll want to read until they get to that mortgage, and they're like, oh, I'm like, I could recite these to you in my sleep.

SPEAKER_02 37:58

Yeah.

SPEAKER_00 37:59

But feel free to read them. But usually by the time we get to that one, I'm like, and and honestly, a lot of the disclosures they've already acknowledged when they applied for the mortgage. Uh-huh. Yeah. So uh yeah, we see this from time to time. It used to be a lot more common.

SPEAKER_02 38:18

Okay, and uh this is uh one of the fun ones that we get, which you know, I got it on Friday. Uh yeah, this is an everyday. Someone was going to send in their funds and they said, what if a problem comes up the day before closing? What if I get to my walkthrough and I don't want to buy the house anymore? Um What if, what if, what if? You know, that you can have endless scenarios. Endless scenarios. What are some of the what are some of the scenarios we've seen that come up the day before closing? I guess is what they want to know. They're like, what have you seen? Like what could happen?

SPEAKER_00 38:55

Yeah, well, first of all, um, when people, when certain parties to the transaction try to rush it or push it through, and like if we need a payoff and the payoff is not in yet, first of all, a lender's clear to close and a title clear to close are two separate things. Yes. Lender means your financing is clear, but you've got to have title clear, which means all the requirements are set so ownership can transfer. A payoff, a mortgage, is a must-have. And it is our life every day that we know that you can call some lending institutions and they will promise you we'll have your payoff in three days, and you won't have it for three weeks. And so we like to set expectations on that. Like, you know what? We're supposed to close on the 30th. We've ordered your payoff. We usually, we usually do pull in all hands on deck. Like, Mr. Seller, please call your lending institution. We need this drive and pick it up. We've had that happen. But we cannot close if we do not have a payoff statement. Um, uh, what's some more problems? Updates coming back, updates coming back, and there being subcontractor liens, mechanics liens. Um, maybe they have a HELOC and they it was zero balance when we first got it, and then all of a sudden it's $60,000. Like they ran it up. Thinking we wouldn't notice that has happened. Um, I don't know. We do uh title updates because of these issues. Another thing about HOA is oh, that's a rabbit hole too. HOAs um here in our state, it was actually on the new on our local news the other day, they're just not regulated like everybody else in our industry. And so they can charge you for like closing statements.

unknown 40:54

Yeah.

SPEAKER_00 40:55

Um, and that has changed a little bit over the past few years, and like a lot of times homeowners aren't familiar with how their particular HOA management company operates.

SPEAKER_02 41:05

You got into um you had a pretty disgruntled seller over in HOA a few weeks ago.

SPEAKER_00 41:11

This was a few weeks ago, and she had to pre-pay for us to get the statement, which is you know, newer, a newer policy, tactic.

SPEAKER_01 41:21

Yeah, I like that. Sorry. Tactic was aggressive.

SPEAKER_00 41:24

Tactically not wrong. Both can be true. Um, but I mean, they sent it to the homeowner. The homeowner paid her, you know, statement fees. They were collected on the settlement statement because that's what the statement they sent to us, and they were gonna charge the when when when we sent the um settlement statement to the seller for review, she's like, hold up, I've already paid these. I know, I believe you. You show me receipts, but the hoa is gonna refund you directly because they're gonna charge you another several hundred dollars to send me an updated statement. Uh yeah, this is exactly what I was about to say. And not cute.

SPEAKER_02 42:07

Yeah, no, not cute.

SPEAKER_00 42:08

Not cute, Mr. HOA company. But that's some problems that can come up prior to closing. And she and that lady was out of state, and it did delay the closing a day just because we had to really make sure we had the right information for her, and we were still under contract, so that worked out good. The contract had not expired, but also something we weren't expecting because we didn't know she had paid it. Right. We didn't find that out until we were reviewing the numbers together. Yeah. So teamwork. Teamwork makes the dream work.

SPEAKER_02 42:43

What would you? I feel like a lot of first-time homebuyers are like nervous. You know, of course you're nervous. This is like the biggest purchase of your that you've probably ever made so far. Um what would you say that some of the biggest mistakes that buyers could make prior to closing?

SPEAKER_00 43:01

Ignoring emails. That's accurate. Ignore like not communicating. Yes. Um, you there's a reason.

SPEAKER_02 43:10

Please don't ghost us. Please don't ghost us. Don't ghost your agent. Don't ghost your lender. Yeah. Because everything that we're asking for in the transaction is needed.

SPEAKER_00 43:22

No news is not good news in a real estate transaction. You should be getting updates along the way. And again, we are not just bothering you for like for fun. When we when we reach out, we actually need something. So I think that's the biggest mistake.

SPEAKER_02 43:41

Um, also, I feel like we've gone over this too. Earlier, you were like moving money. Don't be moving money like I don't know, from your side hustle.

unknown 43:51

Right.

SPEAKER_02 43:52

But you said everything needs to be traceable. Yeah, traceable. And then also withdraw.

SPEAKER_00 43:57

I mean incoming and outgoing. Yeah, exactly.

SPEAKER_02 44:00

Because you they're you're gonna provide your statements and you're gonna provide them again.

SPEAKER_00 44:04

Like you're gonna be signing a whole lot of letter of explanations at closing.

SPEAKER_02 44:09

If it gets approved.

SPEAKER_00 44:11

Yeah.

SPEAKER_02 44:12

Um, and then also assuming clear to close means you're done.

SPEAKER_00 44:15

That's not true. No, and I mean, we have really taken a lot of time to educate our um agents, our loan officers, our buyers, sellers, investors. Um the lender's clear to close is not title clear to close. It's wonderful. It's a step in the right direction, and it's it's great news. And it's great news, and it's to be celebrated. But once the lender gets a clear to close, that's usually when we get we get our instructions on how to prepare the closing package, um, get our update in, get everything lined up to get you scheduled for closing. So it's um a move in the right direction. It's not the end all be all.

SPEAKER_02 45:01

Um yeah, exactly. I would say that um one big mistake that buyers have been making recently is um they're backing out and thinking that they can get their earnest money back.

SPEAKER_00 45:16

Oh I mean, I don't know. I could cry a river.

SPEAKER_02 45:28

Guys, you're not going under contract just for funsies. No. You are understanding. It is a binded contract, a binded legal contract.

SPEAKER_00 45:40

And oh, you know, earnest money, you gotta be willing to put in what you're willing to lose because everyone has to agree for the holder of that earnest money to release it.

unknown 45:53

Exactly.

SPEAKER_00 45:54

And if it's not agreed upon, it goes to court, um, unless there's some other arrangements made prior to the deposit of that earnest money. So yeah, it's been a it's been a fun couple of years for earnest money for me. Well, I need prayer.

SPEAKER_02 46:16

Yes, won't we be thinking and praying for you? Our next segment we're gonna do is a quick closing closing myths, closing myths, fact or fiction.

SPEAKER_03 46:28

All right.

SPEAKER_02 46:28

Uh so we're just gonna do a quick little run through, and all of these are things that people's asked us before. Fact or fiction. I mean, how many times have people asked, like, are you the lender? Like, I mean, really, create homeowner's insurance. Um I mean fact or fiction. Title Company works for the lender. Yes.

SPEAKER_00 46:51

Oh, fact.

SPEAKER_02 46:54

I was gonna say fiction. We work for the the consumer, the buyer, whoever's gonna be.

SPEAKER_00 47:00

Well, we also work for the lender if we're issuing a loan policy.

SPEAKER_02 47:03

We work for everyone. It depends. It's a faction. It's fact and fiction. Both can be true. Both can be true. Um, yeah, so we do work for a buyer, we do work for a lender, we do work for a seller. We don't only work for the lender, we also work for the agent. Yeah. We work for everyone. We are a third party.

SPEAKER_00 47:24

We are the authority in the real estate transaction. We are we're bringing it all together.

SPEAKER_02 47:31

Yeah.

SPEAKER_00 47:31

And we're dispersing all the funds.

SPEAKER_02 47:33

We're the is it the spoke in the wheel?

SPEAKER_00 47:36

No. There is a spoke on a wheel.

SPEAKER_02 47:38

Is the is what's the center? Anyways, we're not good with our analogies. Um, okay, fact or fiction. Once I'm clear to close, nothing can stop closing. Nothing can stop my closing. I mean, many things can stop.

SPEAKER_00 47:55

Tornadoes, trees falling, fires, sellers purchasing uh a property goes out of time. Sellers purchasing a property that falls through.

SPEAKER_02 48:04

Divorce, death. I mean, sorry, but it's true.

SPEAKER_00 48:08

Yeah.

SPEAKER_02 48:08

Um, lots of things can happen. Financing falls through. I mean, I don't know. You don't get the job. We've even seen people don't get the job that they thought they were gonna get. Yeah.

SPEAKER_00 48:18

Um when they need income verification. Yeah, also that's another thing. Don't change jobs while you're buying a home, or make sure your loan officer or lender is fully aware so they can give you the the process on how to make that work.

SPEAKER_02 48:36

All right. Facts or fact or fiction. I don't need titles. Oh my god. Fiction. Oh my god. Fact or fiction. Fact or fiction. I don't need title insurance. False fiction, not true, bad advice.

SPEAKER_00 48:50

Bad advice.

SPEAKER_02 48:51

Um, fact or fiction, closing dates are guaranteed.

SPEAKER_00 48:54

Well, I'll say this. They're not a suggestion. They are not a suggestion. And you cannot assume that the other party is gonna be willing to extend. Exactly. Again, communication.

SPEAKER_02 49:08

Things happen, but they are not, they do not have to extend.

SPEAKER_00 49:12

No, so that is fact. Wait, no, closing dates are guaranteed. That is fiction, but not a suggestion. Not a suggestion.

SPEAKER_02 49:24

Uh fact or fiction, I can buy furniture after my clear to close from my lender.

SPEAKER_00 49:30

I say no. I mean, I say no. Like, let's be smart. Fiction. Like, if you've got some mattress money hanging out and you want to go buy that couch, I mean, I don't know that that's gonna affect you.

SPEAKER_02 49:47

But don't go to Rooms2Go and open a credit card and then your whole house first. Um, okay, so fact or fiction, the title company sets interest rates.

unknown 49:59

Oh my gosh.

SPEAKER_02 50:01

If I could rule the world, close with authority title, and you can get a 2.75 interest rate.

SPEAKER_00 50:09

Oh man, I would, guys. If I could, I would. But no. Title Company sets interest rates is fiction. Yes.

SPEAKER_02 50:21

Um, fact or fiction. We just signed the papers.

SPEAKER_00 50:25

Well, we sign a lot of papers, but that's not all we do. Exactly. That is fiction.

SPEAKER_02 50:32

Fact or fiction. Wire fraud can happen to me. Fiction. Oh, it says can't happen. Give this girl some coffee.

SPEAKER_03 50:45

Oh my god.

SPEAKER_00 50:46

For real. Okay, let's try that again. Wire fraud can't happen to me. That is fiction. Fake news. Wire fraud can happen to anyone.

SPEAKER_02 50:58

I'm just not gonna talk the rest of the podcast. All right, do you have any other fact or fiction you want to add?

SPEAKER_00 51:07

I mean, you can choose your own title insurance company. Oh. Facts. Facts. Facts, facts, facts. No scare tactics. Make sure you choose wisely. Yes, exactly. All title companies are not created equal.

SPEAKER_02 51:29

Put as much thought into choosing your title company as you do choosing your lender. As you do choosing your real estate agent, as you do choosing your home. Your painter. Your painter.

SPEAKER_00 51:42

Absolutely.

SPEAKER_02 51:44

Um, okay. So another fun segment before we go. Would you rather?

SPEAKER_03 51:50

Oh, okay.

SPEAKER_02 51:52

Would you rather? I love this. Would you rather no inspection or no title insurance? No inspection. Amen. Um, would you rather forget your ID or forget to wire your funds?

SPEAKER_00 52:04

Oh man. I'm going to forget to wire my funds so I can show my ID, close, and then get back to the bank. Beg for me to go to the bank right then. Um but hopefully the bank is in the same city you're closing in. Sure. Yeah. Um, they don't all do this over the phone, guys, or through an app.

SPEAKER_02 52:28

Would you rather lean discovered morning of closing or lender denies funding?

SPEAKER_00 52:33

Lean discovered morning of closing because we got moves.

SPEAKER_02 52:37

Yeah, there are ways to ways to get that taken care of. A lender denying your funding sounds ominous. It sounds not good. That sounds, yeah. Lean can be fixed. Lender, I don't know. Mm-hmm. It might take longer to fix. Yeah. Um, okay, would you rather to close remotely forever or always sign in person?

SPEAKER_00 53:04

I mean, I like sign in person.

SPEAKER_02 53:06

Yeah.

SPEAKER_00 53:08

It's a vibe.

SPEAKER_02 53:09

It's a vibe. Okay. Um, I thought of my own. Would you rather?

SPEAKER_00 53:14

Okay.

SPEAKER_02 53:15

Would you rather find a squatter or have a rat infestation at your final walkthrough?

SPEAKER_00 53:21

Rats. Might be cheaper to get rid of. I mean, a squatter may be considered a rat.

SPEAKER_02 53:29

Oh, God.

SPEAKER_00 53:30

All in all, don't like rats.

SPEAKER_02 53:32

Don't like rats. Yeah. Okay. That was just my fun, my fun take on it.

SPEAKER_00 53:38

That was fun.

SPEAKER_02 53:39

Oh, we're wrapping up. Before wrapping up, I sent a text message to the group chat. Okay. And said, let's see here. Um, I said, what real estate and or title questions do you have? And no, you can't date the closing queen tab key.

SPEAKER_03 54:03

Thanks for that. Thanks for the thing.

SPEAKER_02 54:07

Oh my god. I can't even respond to what they've said. Um okay. Well, C. Jones. Uh let's call in Bob. So, Bob, I did have one response that was appropriate to share from Bob. And it says, Can we get a podcast on all the different types of housing loans and how you qualify for each? Then what about how you can borrow against equity without having to go against your original interest rate? Hmm, interesting. It sounds like we need a lender gap.

SPEAKER_00 54:43

That sounds like a yes.

SPEAKER_02 54:46

Yeah.

SPEAKER_00 54:46

And if you are a lender out there listening, hit us up and let us know if you would like to share that information with Caitlin's Bob her Bob at her group of eligible buyers.

SPEAKER_02 55:02

Eligible buyers, yes. Oh, and so like half of them are first-time homebuyers. So I mean I had to take a play off that. Yeah, so that was good. Um, they're gonna have to get a talking too about the rest of the suggestions. I need uh more context, but so funny. So, anyways, I hope that if you're listening, you got something out of that.

SPEAKER_00 55:31

Beyond the closing table, so fun. Um, hey guys, hit us up with your questions. We love to answer them, and there is always something to talk about when it comes to title.

SPEAKER_02 55:43

Yes, follow us at creative.closers um or authority title on escrow. We'll see you next time. Bye guys. Bye.

SPEAKER_00 55:52

Bye guys, if this podcast hit home, hit a nerve, or gave you something to think about, we hope you'll join us next time. We'd love to hear what resonated with you, what stood out, challenged you, or made you think. Let's keep the conversation going. Until next time, keep questioning the old rules and keep closing new deals.