When Does The Seller Get Money After Closing? 4 Things to Expect on Closing Day

“It’s my money, and I need it now!”

Seriously, though, if selling a house wasn’t about the money, then who would do it?

Let’s be honest: when you’re selling a house, you want to know when to expect those closing funds in your account and what you can do to speed up the process.

Let’s take a look at some things that impact how quickly you get paid, what to expect at closing and how you can get help with your real estate transaction.

Wet Closing vs. Dry Closing

When you get to your closing date, it could go one of two ways: wet closing or dry closing.

A wet closing is when all closing documents are signed, sealed, and delivered on closing day, and the funds are released to the seller either at closing or within 24 hours after.

On the other hand, with a dry closing, the deal isn’t necessarily done once the paperwork is signed—meaning it could take much longer to receive payment.

Texas, like most states, is a wet funding state, meaning you won’t have to worry about that.

The Seller’s Guide to Closing Day: 4 Things to Expect

Congratulations—you made it to the closing table! Here are a few things to expect.

#1 Deed and Bill of Sale

Deeds are legal documents that transfer property ownership to the new buyer, whereas the bill of sale agreement includes any personal property you intend to leave behind, like your appliances or furniture. 

#2 Affidavit of Title

When a home transfers ownership, it’s important that everyone involved in the transaction knows who owns what. Your real estate agent will typically ask you to sign an Affidavit of Title—a legal document that attests that you own all the property listed on the deed. 

#3 Seller’s Closing Disclosure

The seller receives a different closing disclosure than the buyer. This document is usually two pages long and shows closing costs, final payments, and home sale proceeds. In essence, it should tell you what you sold it for, how much is deducted from that, and how much you take home.

#4 Loan Payoff

The last thing you’ll have to deal with is your loan payoff. You’ll need to call your mortgage lender and ask them for a payoff quote for your final mortgage payment and any prepayment penalties. 

You may also be able to find this information through an online portal. Once all the paperwork is completed, your loan will be paid off, and your lender will prepare a release of mortgage for you. 

You can expect to receive your closing payment the same day or within the next 24 hours.

Two Tips to Speed Up the Home Closing Timeline

Most of the time, if you’re selling your home, you’re also buying another, so you might be strapped for cash.

Here are two ways you can expedite the closing process.

Always Choose a Wire Transfer Over a Paper Check 

After all the last-minute checks by the closing agent, it’s time for everyone’s favorite part—getting paid! Whether you’re buying or selling, wire transfers are always the preferred method of payouts. They’re fast and secure, whereas paper checks could take a while to clear your bank account.

Electing for a wire transfer almost always means receiving your funds immediately. You should consult your bank to find out the timeline and whether there are any fees for receiving funds.

Hire a Houston Real Estate Attorney

The best way to ensure a successful closing is by hiring an experienced real estate attorney. At Titus Law Firm, we can help you avoid common pitfalls and mistakes, get the best possible deal, and guide you through any complications that may arise.

Our real estate professionals know the ins and outs of buying and selling property in Texas and can anticipate what could go wrong. We can negotiate on your behalf to get everything you deserve out of this transaction.

Are you ready to seal the deal? Don’t rush the process, trust the process with help from a qualified Houston real estate attorney. Book your consultation today.