Selling your home is a significant milestone, but closing can be complex and overwhelming. A single oversight could lead to costly delays or even jeopardize the sale. That’s why it’s essential to understand the closing process and ensure every detail is handled correctly. By preparing and consulting a real estate attorney, you can ensure every detail is handled properly.
What is a Closing?
The closing is the final step in the lengthy process of buying real estate. It is the day the buyer officially takes legal ownership of their new home and receives the keys. For sellers, it is the day they receive the funds for the sale of their home.
How to Prepare for a Closing
The buyers and sellers must each complete several tasks in preparation for the closing. A home inspection needs to be done. This brings any defaults to light that could impact the property’s value. Depending on the inspection results, the buyer could back out of the deal or negotiate for a lower price. A buyer should consider consulting with a real estate attorney. The lawyer will advise on any potential legal issues or future expenses that the buyer hasn’t considered. The lawyer will also review all documentation, ensuring the buyer’s best interests are looked out for.
If the buyer plans to secure a mortgage, the lender will likely require them to purchase real estate insurance. This protects the homeowner and lender should anything happen to the home. In addition, the buyer will need to finalize the mortgage process with the lender. This could include submitting more income, debt, and employment history documentation. The buyer also has an opportunity at this point to negotiate closing costs. They can ask the lender to lower or waive the application or origination fee. They can also request for the lender to shop around for title insurance rather than using the automatic fixed fee.
On the day of the closing, bring a cashier’s check with you for the amount of the closing costs. The amount typically includes the closing costs, prepaid interest, property taxes, and down payment. In some cases, you may be able to wire the money or have it put in an escrow account instead of bringing a physical paper check with you.
Closing Timeline
The timeline for a real estate sale can vary significantly. Typically, the time between the signing of the purchase agreement and the closing is about 44 days. However, it can be shorter if the buyer pays in cash or longer if unforeseen complications arise. The actual closing meeting can last several hours. It is advisable to do one final walkthrough before signing the paperwork. While an inspection could have been good, things could have happened between the inspection and the closing date. The final walkthrough ensures you know exactly what you are buying.
What Happens at a Closing
On the closing day, the seller is typically completely packed and moved out of the house. However, the buyer and seller can negotiate for a different timeline. At the closing, the buyer will sign a lot of paperwork. These legal documents transfer the ownership of the property from one party to the other. If the buyer finances the purchase with a mortgage, there will also be loan documents for the buyer to sign.
Be Prepared When Selling Your Home
A successful closing depends on thorough preparation, clear communication, and proper legal documentation. From completing a home inspection to finalizing mortgage arrangements, each step plays a crucial role in ensuring a smooth process when selling your home. Buyers and sellers alike must be aware of their responsibilities, deadlines, and potential obstacles that could delay or complicate the sale. Given the complexities involved, working with a real estate attorney can help protect your interests and ensure a seamless transaction.
Schedule a consultation with one of our experienced attorneys to plan your next home purchase.
