6 Things to Remember for Closing Day
Apr 24, 2025 | Realtor Resources | Share:
You already know the basics of closing day preparation, such as confirming the date, time, and location of closing, and ensuring your clients have unexpired identification. However, several other important details can easily be overlooked in the rush of finalizing a transaction.
Prevent unexpected delays and make closing day a smooth, enjoyable experience for everyone involved by remembering these six tips.
#1: Always review the Closing Disclosure carefully
The Closing Disclosure (CD) is a detailed financial statement that outlines the costs involved in a real estate transaction. It identifies all closing costs, fees, and disbursements, and it specifies which parties are responsible for each expense. South Oak will send this document before closing day so that all parties can review it.
Although your title company strives for accuracy, honest mistakes can still happen. Always take the time to thoroughly review the Closing Disclosure upon receipt.
When you review the closing disclosure, check the following:
- All names are spelled correctly, and the address matches the property address exactly
- Accuracy of all loan details, including loan amount, interest rate, principal and interest, total monthly payment, and amount of cash needed for closing
- Make sure all debits and credits are present and match the agreed-upon amounts from the purchase agreement
- Verify that commission amounts are correct, earnest money deposits have been credited, and that seller concessions are accurately reflected
This review process helps catch potential errors or discrepancies before everyone arrives at the closing table. Both buyer’s and seller’s agents should examine the CD and then encourage their clients to do the same. Take the opportunity to make sure there are no surprises or unexpected items, and address any questions your clients may have before closing day arrives.
Neglecting to review the Closing Disclosure can lead to unfortunate consequences. Last-minute changes may delay closing, or your clients may feel unprepared or surprised by costs they didn’t anticipate. Changes cannot be made once the documents are signed at closing.
#2: The monthly mortgage statement amount differs from the final payoff amount
Many sellers are surprised to discover that the payoff amount needed to satisfy their mortgage at closing is different from what appears on their monthly mortgage statement. Monthly mortgage statements only show the principal balance without including additional fees and considerations.
The actual payoff amount includes interest accrued through the payoff date, potential prepayment penalties (depending on loan terms), and various processing fees such as statement fees or reconveyance fees. In some cases, escrow balances may be credited back to the borrower, which can also affect the final figure.
This discrepancy can create challenges at closing if sellers have calculated their expected proceeds based solely on their monthly statement. It could leave them with insufficient funds to cover other closing costs or, in extreme cases, delay or derail the closing altogether.
To avoid these issues, the seller must contact their lender directly to request an official payoff statement. Due to privacy restrictions, neither the title company nor the real estate agent can obtain this information on the seller’s behalf. This statement should be ordered no more than two weeks before the closing date, with the anticipated closing date specified in the request. Once received, it should be forwarded to your closer immediately.
#3: Know your POA requirements for closing day
When a Power of Attorney (POA) will be used at closing, several requirements must be addressed well before closing day. Powers of Attorney require prior approval from both the closing company and the lender, and this approval process cannot be initiated at the last minute. POAs must meet specific legal requirements to be valid for real estate transactions, and lenders have strict guidelines about their usage for mortgage documents.
The original POA document must be brought to closing; you cannot use a copy or a digital version. Original documents verify authenticity and prevent fraudulent documentation, and copies typically cannot be legally recorded in most counties.
To get a valid Power of Attorney for a real estate transaction, notify your title company as soon as you know it will be needed. Avoid using generic online POA forms, as these rarely contain the specific language required for real estate transactions. Instead, your closing attorney can help ensure the proper language is included. Allow at least 5-7 business days for the review and approval process. Never arrive at closing with an unapproved POA; this will inevitably delay your closing.
If your client will be using a POA or any other document that grants signing authority, such as estate documents or corporate resolutions, make sure to communicate with your closer in advance to understand the specific document requirements for your situation.
#4: Spouses must still sign closing documents, even if they're not on the title
In Alabama, a spouse must sign the closing documents when selling a primary residence, even if they’re not listed on the property’s title. This requirement stems from Alabama’s marital property laws, which protect spousal interest in real property: spouses have homestead rights that must be legally relinquished for a property sale to proceed, regardless of whether their name appears on the deed. The only exception to this rule is for investment properties, which aren’t subject to the same homestead protections.
This requirement has significant implications for the closing process. Missing spouse signatures can prevent the transaction from being legally recorded, and title insurance cannot be issued without the proper release of all potential interests. If a spouse’s existence is discovered at the last minute, closing may be postponed.
If a spouse cannot attend the closing, there are several options. You can arrange for a properly executed and approved Power of Attorney in advance, but remember that this requires approval from both the closing company and lender. Another option is to schedule a separate closing time for the spouse if schedules conflict.
In Alabama, couples are either married or divorced; there is no “legally separated” classification. Unless there is a divorce decree, a couple is married in the eyes of the law. For couples in the process of obtaining a divorce, both parties must still sign the closing documents. Your title company can make arrangements to prevent awkward moments, such as separate closing rooms or staggered times for signing the documents.
To avoid surprises, always ask the homeowner to disclose their complete marital status when listing a property or preparing a contract.
#5: Plan to initiate wire transfers before the closing appointment
Wire transfers for closing funds should always be initiated well before the closing appointment, not at the closing table. This timing is critical because wire transfers can take several hours to process, and closings cannot proceed until funds are confirmed in the escrow account. If a buyer attempts to start a wire transfer at the closing table, it will almost certainly cause closing delays.
Wire fraud that targets real estate transactions is increasingly common, so buyers should never trust wire instructions sent via regular email or text messages. To ensure that wire transfers are safe, buyers should only use wiring instructions sent through secure platforms like CertifID. If buyers have any uncertainty about the instructions, the best practice is to contact the title and closing company directly to verify before sending funds.
The Closing Disclosure (CD) will specify the exact amount needed to close. When reviewing the CD, buyers should immediately begin preparing their funds transfer to ensure that everything is in place well before closing day.
While wire transfers are common for closing transactions, other forms of certified funds may also be accepted. Cashier’s checks issued by a bank are typically acceptable, though buyers should always verify specific requirements for these with their closing company, including who the check should be made payable to. Personal checks are never accepted for closing costs.
#6: Funds aren't disbursed to sellers immediately after signing
Many sellers mistakenly believe they’ll receive their proceeds immediately after signing their closing documents, but this isn’t the case. This timing matters significantly because sellers often need these proceeds for their next home purchase, moving expenses, or other financial obligations.
South Oak has up to two full business days to process disbursements after closing, though we strive to complete this process more quickly when possible. Wire transfers initiated after banking hours will be processed the next business day, and closings that take place on Fridays, weekends, or holidays will naturally experience longer disbursement timelines due to banking hours. These timeframes aren’t arbitrary but instead reflect the necessary security processes that protect all parties involved.
As an agent, make sure to set clear expectations about the timeline for receiving funds during pre-closing discussions with your sellers. Explain that the delay isn’t due to inefficiency but rather to security measures that prevent fraud. Advise your sellers to plan their finances accordingly, especially if they need their proceeds for another closing or other immediate expenses.
At South Oak Title and Closing, we're committed to making closings enjoyable and stress-free for agents, lenders, and their clients. Our experienced team works diligently to anticipate potential issues and communicate clearly throughout the process. By partnering with a closing company that prioritizes both security and service, you can ensure your clients have an outstanding closing experience from start to finish.
If you have questions about any aspect of the closing process or need guidance on a specific situation, don't hesitate to contact your local South Oak office. Our team is always available to help you navigate even the most complex closing scenarios.
Ready to experience the South Oak difference? Order a title or schedule a closing today.
#1: Always review the Closing Disclosure carefully
The Closing Disclosure (CD) is a detailed financial statement that outlines the costs involved in a real estate transaction. It identifies all closing costs, fees, and disbursements, and it specifies which parties are responsible for each expense. South Oak will send this document before closing day so that all parties can review it.
Although your title company strives for accuracy, honest mistakes can still happen. Always take the time to thoroughly review the Closing Disclosure upon receipt.
When you review the closing disclosure, check the following:
- All names are spelled correctly, and the address matches the property address exactly
- Accuracy of all loan details, including loan amount, interest rate, principal and interest, total monthly payment, and amount of cash needed for closing
- Make sure all debits and credits are present and match the agreed-upon amounts from the purchase agreement
- Verify that commission amounts are correct, earnest money deposits have been credited, and that seller concessions are accurately reflected
This review process helps catch potential errors or discrepancies before everyone arrives at the closing table. Both buyer’s and seller’s agents should examine the CD and then encourage their clients to do the same. Take the opportunity to make sure there are no surprises or unexpected items, and address any questions your clients may have before closing day arrives.
Neglecting to review the Closing Disclosure can lead to unfortunate consequences. Last-minute changes may delay closing, or your clients may feel unprepared or surprised by costs they didn’t anticipate. Changes cannot be made once the documents are signed at closing.
#2: The monthly mortgage statement amount differs from the final payoff amount
Many sellers are surprised to discover that the payoff amount needed to satisfy their mortgage at closing is different from what appears on their monthly mortgage statement. Monthly mortgage statements only show the principal balance without including additional fees and considerations.
The actual payoff amount includes interest accrued through the payoff date, potential prepayment penalties (depending on loan terms), and various processing fees such as statement fees or reconveyance fees. In some cases, escrow balances may be credited back to the borrower, which can also affect the final figure.
This discrepancy can create challenges at closing if sellers have calculated their expected proceeds based solely on their monthly statement. It could leave them with insufficient funds to cover other closing costs or, in extreme cases, delay or derail the closing altogether.
To avoid these issues, the seller must contact their lender directly to request an official payoff statement. Due to privacy restrictions, neither the title company nor the real estate agent can obtain this information on the seller’s behalf. This statement should be ordered no more than two weeks before the closing date, with the anticipated closing date specified in the request. Once received, it should be forwarded to your closer immediately.
#3: Know your POA requirements for closing day
When a Power of Attorney (POA) will be used at closing, several requirements must be addressed well before closing day. Powers of Attorney require prior approval from both the closing company and the lender, and this approval process cannot be initiated at the last minute. POAs must meet specific legal requirements to be valid for real estate transactions, and lenders have strict guidelines about their usage for mortgage documents.
The original POA document must be brought to closing; you cannot use a copy or a digital version. Original documents verify authenticity and prevent fraudulent documentation, and copies typically cannot be legally recorded in most counties.
To get a valid Power of Attorney for a real estate transaction, notify your title company as soon as you know it will be needed. Avoid using generic online POA forms, as these rarely contain the specific language required for real estate transactions. Instead, your closing attorney can help ensure the proper language is included. Allow at least 5-7 business days for the review and approval process. Never arrive at closing with an unapproved POA; this will inevitably delay your closing.
If your client will be using a POA or any other document that grants signing authority, such as estate documents or corporate resolutions, make sure to communicate with your closer in advance to understand the specific document requirements for your situation.
#4: Spouses must still sign closing documents, even if they're not on the title
In Alabama, a spouse must sign the closing documents when selling a primary residence, even if they’re not listed on the property’s title. This requirement stems from Alabama’s marital property laws, which protect spousal interest in real property: spouses have homestead rights that must be legally relinquished for a property sale to proceed, regardless of whether their name appears on the deed. The only exception to this rule is for investment properties, which aren’t subject to the same homestead protections.
This requirement has significant implications for the closing process. Missing spouse signatures can prevent the transaction from being legally recorded, and title insurance cannot be issued without the proper release of all potential interests. If a spouse’s existence is discovered at the last minute, closing may be postponed.
If a spouse cannot attend the closing, there are several options. You can arrange for a properly executed and approved Power of Attorney in advance, but remember that this requires approval from both the closing company and lender. Another option is to schedule a separate closing time for the spouse if schedules conflict.
In Alabama, couples are either married or divorced; there is no “legally separated” classification. Unless there is a divorce decree, a couple is married in the eyes of the law. For couples in the process of obtaining a divorce, both parties must still sign the closing documents. Your title company can make arrangements to prevent awkward moments, such as separate closing rooms or staggered times for signing the documents.
To avoid surprises, always ask the homeowner to disclose their complete marital status when listing a property or preparing a contract.
#5: Plan to initiate wire transfers before the closing appointment
Wire transfers for closing funds should always be initiated well before the closing appointment, not at the closing table. This timing is critical because wire transfers can take several hours to process, and closings cannot proceed until funds are confirmed in the escrow account. If a buyer attempts to start a wire transfer at the closing table, it will almost certainly cause closing delays.
Wire fraud that targets real estate transactions is increasingly common, so buyers should never trust wire instructions sent via regular email or text messages. To ensure that wire transfers are safe, buyers should only use wiring instructions sent through secure platforms like CertifID. If buyers have any uncertainty about the instructions, the best practice is to contact the title and closing company directly to verify before sending funds.
The Closing Disclosure (CD) will specify the exact amount needed to close. When reviewing the CD, buyers should immediately begin preparing their funds transfer to ensure that everything is in place well before closing day.
While wire transfers are common for closing transactions, other forms of certified funds may also be accepted. Cashier’s checks issued by a bank are typically acceptable, though buyers should always verify specific requirements for these with their closing company, including who the check should be made payable to. Personal checks are never accepted for closing costs.
#6: Funds aren't disbursed to sellers immediately after signing
Many sellers mistakenly believe they’ll receive their proceeds immediately after signing their closing documents, but this isn’t the case. This timing matters significantly because sellers often need these proceeds for their next home purchase, moving expenses, or other financial obligations.
South Oak has up to two full business days to process disbursements after closing, though we strive to complete this process more quickly when possible. Wire transfers initiated after banking hours will be processed the next business day, and closings that take place on Fridays, weekends, or holidays will naturally experience longer disbursement timelines due to banking hours. These timeframes aren’t arbitrary but instead reflect the necessary security processes that protect all parties involved.
As an agent, make sure to set clear expectations about the timeline for receiving funds during pre-closing discussions with your sellers. Explain that the delay isn’t due to inefficiency but rather to security measures that prevent fraud. Advise your sellers to plan their finances accordingly, especially if they need their proceeds for another closing or other immediate expenses.
At South Oak Title and Closing, we're committed to making closings enjoyable and stress-free for agents, lenders, and their clients. Our experienced team works diligently to anticipate potential issues and communicate clearly throughout the process. By partnering with a closing company that prioritizes both security and service, you can ensure your clients have an outstanding closing experience from start to finish.
If you have questions about any aspect of the closing process or need guidance on a specific situation, don't hesitate to contact your local South Oak office. Our team is always available to help you navigate even the most complex closing scenarios.
Ready to experience the South Oak difference? Order a title or schedule a closing today.