What are the main functions and responsibilities of KEY TITLE?

As a settlement company, KEY TITLE has many functions. The processors and settlement officers record documents; disburse funds; work with the lender to make sure all title, survey, insurance requirements are met; resolve any title issues or last minute loan changes; coordinate with buyers, sellers, real estate agents, and lenders to make sure the closing goes as smoothly as possible and notify the pertinent parties of any problems that arise.

Whom do I contact if I have any questions prior to closing?

This depends on the subject matter of your question but your real estate agent, loan officer, KEY TITLE Processor and KEY TITLE Settlement Officer are all available to assist you.

How is the closing scheduled?

For a Sale/Purchase, the Buyer's real estate agent will coordinate the closing date and time with the buyers, sellers, and the Sellers' agent. The Buyers' agent will then call KEY TITLE to schedule the closing. Once the loan is scheduled by the Buyers' agent, KEY TITLE will coordinate with the lender to facilitate receipt of necessary documents for the closing.

For a Refinance, the lender usually calls to schedule the loan closing with KEY TITLE once he has given final loan approval.

What if I will be unable to attend closing?

If a Seller cannot attend the closing, please notify KEY TITLE as soon as possible, since a Power of Attorney will need to be prepared. This entails formally appointing someone such as a spouse or other relative or friend to sign all the documents on your behalf. This person will need to attend the closing in your place.

For a Buyer, or homeowner in the case of a refinance, a Power of Attorney might be permitted. However, any use of a Power of Attorney must first be approved by the lender and this is sometimes difficult to obtain. If it is allowed, you will need to let KEY TITLE know right away who will be attending settlement and signing on your behalf so that an appropriate Power of Attorney can be prepared and/or reviewed prior to the closing.

Occasionally, the documents may be sent to the party who cannot attend the closing. On those infrequent occasions when this is done, the documents are sent by overnight express to the party, who will then need to sign the documents. Since many documents must be notarized, the party must execute them in front of a notary public. A return overnight express package will be provided for convenience.

What do I need to bring to closing?

All parties must bring an unexpired government issued photo identification such as a driver's license or passport to the closing since KEY TITLE is required to verify the identity of all parties. For sellers, keys, garage door openers and if you choose to have your proceeds wired into your bank account you will need to bring specific wiring instructions for the account to which the funds will be transmitted. This is most easily accomplished through a voided check for that account. Homeowners who are refinancing and taking cash out and wish to have the funds wired should similarly bring wiring instructions, a voided check or deposit slip to closing.

Buyers must bring sufficient certified funds to pay the down payment called for in the sales contract. This is usually done by a cashier's or certified check but funds can also be wired to KEY TITLE as long as they are received in our bank account prior to the closing. If the buyer has brought more than the amount required to the closing, KEY TITLE will issue the buyer a check for the excess.

Who will be at the closing?

All Buyers, Sellers, and their respective real estate agents, will attend the closing which is conducted by the KEY TITLE settlement officer. Lender representatives and mortgage brokers are rarely in attendance.

How long will the settlement process take?

A Refinance closing takes approximately 30 minutes and the settlement of a Sale/Purchase lasts 45 minutes to one hour. If complications occur, the time could be much greater.

Can I review the loan documents ahead of time?

If you wish to review your loan documents before closing and the lender has provided them in a timely manner to KEY TITLE, please notify us in advance so that a package can be prepared for you; however, be advised that KEY TITLE often does not receive the lender's loan package until the day of closing.

What is the procedure with the documents and funds after closing?

For a Sale/Purchase, the documents are signed at closing. Once all funds which are due at closing are received from the lender and buyer, the legal documents can be recorded in the land records of the appropriate jurisdiction. After the documents are recorded, any proceeds are disbursed to the seller and the payoff checks for any existing mortgage on the property are sent, usually within 48 hours of closing.

For a Refinance, there is typically a three-day rescission period. This means that although all documents are signed at closing, three business days must elapse before the legal documents can be recorded. It is only after recordation in the land records of the appropriate jurisdiction that KEY TITLE can pay off existing liens and/or disburse any cash-out proceeds to the borrower.

What is title insurance?

Title insurance protects against a loss to the lender or the owner in the event that the title to the property is other than as insured. See the "Title Insurance Info" page of this website, under the "Buyer's" page for a more complete discussion.

Will I get a survey for my property?

Whether or not you get a survey on your property depends on the type of property you are purchasing. If you are purchasing a condominium, a survey is not required. If you are purchasing a townhouse or single family home, most lenders will require a survey. Surveys are generally not required for refinances.

 

Why is the payoff amount on my mortgage higher than the principal balance? What about FHA payoffs?

Interest on your loan is paid in arrears, e.g. your April payment pays for March interest. The principal balance quoted on your statement reflects the outstanding amount of the loan itself at the time the statement was prepared, so any interest due to the lender from the time of your last payment through the time it actually receives the funds must be added to that amount to obtain a payoff figure. Even overnight express payments can be delayed, so KEY TITLE routinely calculates interest through a date 10-15 days post-closing to ensure that sufficient funds are in the lender's hands to payoff the loan. The lender will return any excess funds directly to the borrower.

Interest on FHA payoffs is calculated through the end of the month. Regardless of the day on which the payoff is received, the Lender will collect and retain the entire month's interest. Parties who have FHA payoffs are encouraged to schedule their closings during the 3-7 days prior to the last business day of the month. Key Title Processors and Settlement Officers can assist parties with FHA payoffs with scheduling their closings accordingly.

What happens with any property tax and hazard insurance escrow accounts I have with the mortgage that is being paid off at closing?

KEY TITLE overnight expresses payoff checks to the lenders after recording the Deed and/or Deed of Trust documents. After the payoff check is received by your lender, any overpayment and/or escrow balances will be refunded to you directly by the financial institution. This typically takes 2-3 weeks.