Buying a home is a dream come true for many people. Congratulations if you’re approaching the closure of this phase in life. You have probably found a suitable home, met the seller and settled on a price after negotiations. Buying a home can be intimidating because you realize the real estate closing is waiting when you think all is done.
Your real estate agent can make the procedure convenient by embracing title closing software. Follow these simple steps toward a successful real estate closing.
1.Hire an escrow
This is a neutral third party who is the custodian of all the transaction documents and funds needed for the closing. Escrow protects both the buyer and the seller from unscrupulous deals.
2.Title search and purchase insurance
A title search ensures the property’s validity and ownership. Title insurance is a policy to ensure that transfer of ownership is seamless at closing. A title search and purchase insurance prevent an unauthorized seller from transferring property. The process involves a title deed legal officer, allowing buyers peace of mind.
3.Hire a closing real estate attorney
Real estate documents are legal documents. A closing real estate attorney is a legal professional familiar with the complicated register used in property documents. An attorney helps the buyer to gain professional advice and advocacy in the transfer paperwork.
4.Get approval for a mortgage
Getting approved for a mortgage early in the property buying process is critical. The seller is committed to the transaction when a seller gets approval to obtain a mortgage loan. A mortgage approval from a lender facilitates the closing process to move fast. And while at it, ask your lender for an offer on the interest rate.
5.Estimate your closing costs
Real estate closing has a cost implication. The escrow company has service fees for the closing procedure. It is critical to examine the itemized list of items from the escrow and ask for a discount or an offer. Ask for a waiver or negotiate for administrative fees, email, and processing fees.
6.Inspect the home for repairs and pests
A home inspection is a critical process before closing. Hire a professional to inspect the property and raise any concerns about pest infestation, repairs and innovation. The seller can commit to sorting out the issue before the final closing.
7.Renegotiate the offer
A home inspection may cost the buyer time and money. The buyer can request for purchase offer, especially if the property inspection reveals any issues.
8.Lock in the interest rate
The mortgage interest rate fluctuates with time. The buyer should monitor interest rates and lock in the lowest feasible rate.
9.Deposit funds into the escrow account
Deposit the down payment and closing costs with the escrow account. You’re likely to have paid some amount upon signing the purchase agreement. Agree with the seller on the advance amount you need to deposit and the form of payment they prefer.
10.Sign the paperwork
This is the actual closing date. Walk through the process to ensure all is well. Here, the buyer and the seller meet in the presence of their lawyers. Your attorney will help you oversee the signing and transaction documentation. Finally, you should receive the keys to your home and the deed of ownership.
Real estate closing can be intimidating. Therefore, hire a real estate attorney to help you with the closing process.