You have found your dream home, and it’s at a price you can afford! Now, you want to act fast to submit your offer and close before another interested buyer comes along. If you have never bought a home before, you may not know that the process can be quite intensive and lengthy. This guide for homebuyers will explain what you need to know about the closing and title process.
The Steps to a Successful Closing
The closing process begins with the opening of an escrow account. This is where your money is placed and held during the process. This ensures the seller follows through with the sale and assures the seller that you, as the buyer, have the money to complete the purchase. A title company will then complete the title search process, and title insurance will be secured. This protects your investment as the buyer.
During the process, a home inspection will take place. This is necessary to ensure you understand the true condition of the property and house. As the buyer, you will secure the finances to complete the purchase. You could pay entirely out of pocket, but most people secure mortgage approval.
When everything is complete, the parties will sit down to complete the deal by signing the closing documents. Once signed, the escrow company will release the funds to the seller. The purchase is now complete. The buyer is now free to take possession of the property. To make the purchase official, the sale needs to be recorded in the county where the property is. This puts everyone on notice that you are now the new owner of the property.
Essential Closing Documents
Buying a house involves an endless amount of paperwork. It is essential to stay organized so that you have all of the necessary documents ready when you need them. These are the commonly required documents that you will use during the home-buying process.
- Promissory Note
- Deed of Trust
- Closing Disclosure
- Certificate of Title
- Property Deed
- Statement of Information
- Proration Agreement
- Bill of Sale
Tips for a Smooth Closing
There are several steps homeowners can take to ensure a smooth closing process. Staying organized is essential, as there are many documents required. Keep a file with tabs to keep your physical paperwork organized. Do something similar on your computer to keep your digital documents organized. Scan all paperwork so that you have a physical and digital version. However, you will want to keep both, as some documents are required to be originals and not copies.
Before you sign any document, read it entirely. Make sure you understand everything that it says. If you don’t understand a term or have a question, don’t be afraid to ask for clarification. You can ask your real estate agent or real estate attorney. Do not sign a document that you do not agree with or understand. Before you complete the final closing documents, do one more walkthrough of the house. This final walkthrough will give you peace of mind that the property is what you expect it to be.
While we all hope everything will work out as expected, life is unpredictable. It is important to have a backup plan for when the unexpected happens. Delays can be costly if you don’t have a plan in place.
Closing and Title Guide for Homebuyers
Buying your dream home should be an exciting experience that is full of hope. A real estate attorney can act as a guide for homebuyers. They can explain the process and answer any questions that come up. Should there be an unexpected issue, a real estate attorney can immediately take action to correct the issue. This will ensure your home-buying experience continues moving forward so you can complete your home purchase.
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