Introduction

Closing day is an exciting milestone for homebuyers in New Jersey. It’s the day when ownership officially transfers from the seller to the buyer. By the time of your closing, you should already be familiar with your attorney and his/her office, as well as have a good grasp of the process.  Still, the closing day is the culmination of all the preparation, expense, and anticipation.  As such, a qualified and experienced New Jersey real estate attorney can shepherd you through the process so that it is as stress free as possible.  

What is a closing?  It is the day that you will sign certain legal documents to finalize the financial portion of the transaction that will then allow for the funds to transfer and the conveyance (ownership) documents to be recorded in your favor giving you title to the home.  Your New Jersey real estate lawyer should be able to also answer other questions with respect to:

• How taxes are paid depending on if you are buying cash or through a loan in which the taxes are escrowed
• How to arrange for the transfer of utilities
• When to make the first payment when you have a mortgage
• Other miscellaneous questions to make the transition into your home as seamless as possible. 

To ensure a smooth process, here’s what you need to know:

1. Signing Legal Documents

• Mortgage Documents: You’ll sign paperwork related to your transaction, including the Note and Mortgage. These documents outline your loan terms and the property as collateral. An experienced New Jersey real estate attorney should be able to explain the legal significance of these documents, and your basic obligations.  
• Closing Disclosure: In any transaction that requires a mortgage, a closing disclosure is a document that provides a detailed breakdown of costs, including loan fees, taxes, and insurance. This should be reviewed with a knowledgeable New Jersey home closing lawyer.  Many times, the financial information reflected on the buyer’s closing disclosure is also repeated on the combined ALTA statement that presents the financial breakdown of both the buyer’s side and the seller’s side. 
• Settlement Statement (HUD-1): In a cash transaction, the HUD-1 statement summarizes all financial transactions related to the purchase. It shows the final costs, credits, and adjustments.
• Certificate of Occupancy: In New Jersey, many towns require a Certificate of Occupancy or Certificate of Continued Occupancy in addition to a Smoke and Carbon Monoxide Detector Certificate.  New construction always requires a Certificate of Occupancy.  If applicable, you’ll receive the Certificate of Occupancy/Certificate of Continued Occupancy in addition to the Smoke and Carbon Monoxide Detector Certificate that is always required at closing.  

2. Payment

• Closing Costs: These costs include lender fees, title insurance, appraisal fees, attorneys’ fees, tax adjustments, water/sewer adjustments, HOA (if applicable) adjustments, as well as the balance of the cash down payment. You’ll also pay for prepaid items like property taxes, homeowner’s insurance, and any interest due between closing and the first mortgage payment.
• How Closing Costs are Paid: Working with your lender, an experienced New Jersey real estate attorney will provide an estimate beforehand, usually the night before or the morning of the closing.  In most situations, you will be required to wire a sum to the title company that will be acting as “settlement agent” for the transaction.  Your New Jersey closing lawyer will provide you with the exact amount to wire along with wiring instructions.  You will also be instructed to verify the wiring instructions with the title company over the phone to ensure that there is no chance of fraud through email hacking.  This is very important: Always verify the wiring instructions by phone with the recipient before sending any wire!  Sometimes, depending on the circumstances, you may be allowed to bring a cashier’s check to cover closing costs, instead of a wire. 

3. Duration

• Walkthrough Inspection: At least 24 hours before the closing, but best during the morning of the closing, you should conduct a walkthrough inspection of the property to ensure that the home is as it was during the time of inspections or repaired in accordance with any agreement arising out of inspections. This should be done before you go to your New Jersey real estate lawyer’s office. 
• Time Commitment: Plan for about an hour or two for the closing process. An efficient New Jersey real estate attorney office will be able to expedite the process; however, it also depends on the lender and their procedures to approve the signed documents and authorize funding which is called “funding approval.” Ultimately, an experienced and efficient New Jersey real estate attorney can move you through the closing process smoothly whereby the actual time depends on the complexity of the transaction and the lender involved. 

Conclusion

Closing day is the culmination of your home buying journey. Be prepared, ask questions, and celebrate becoming a homeowner! Most importantly, remember to consult with a skilled New Jersey real estate attorney for personalized advice specific to your situation. At Abdou Law Offices, LLC, we are dedicated to ensuring that you have a “Happy closing!”