A real estate closing is the final step in completing a real estate property transfer. After a date is set, the property is transferred from the buyer to the seller. In many locations, the ownership is official when the contract is actually recorded. Many new home buyers are intrigued at the term closing. There are many steps involved in a real estate closing. Consider this list of steps for a real estate closing.
This is a third party bank account that is considered neutral territory to hold the deposit check.
Both a title search and insurance can legally provide the buyer with a security that the property is theirs. A title search on a property makes sure there are no third party claims to the property. Title insurance provides protection if claims arise. Many lenders make these loan requirements.
A real estate attorney may be required to close the property transaction. Some locations do not require this step. However, it is best to get a professional opinion on your documents.
There will be costs involved in a closing. These are negotiated usually in the purchase agreement. It depends on your location to what is considered a normal seller and buyer closing cost. These are negotiable and should be dealt as such. Closing costs do vary per transaction and location with a typical cost of between 2 and 5 % of the cost of the home. There is a good faith estimate obtained by a lender that can spell out the anticipated closing costs per location.
A termite inspection maybe a requirement and infestations will have to be fixed before a closing with a mortgage company. Home inspections are not required, but are a common sense step in purchasing a property. There may be hidden problems that only a home inspector can find. With a contingency in the contract, property problem repairs can further be negotiated or the buyer can walk away. A property with an “AS IS” statement may be different.
Mortgage interest rate
Lock in your interest rate before closing.
Remove Contingencies If all terms have been met towards the end of the closing process, they are considered satisfied.
A buyer should have a final walk through the property before closing to ensure there is no damage or removal of agreed upon items.
Sign the final paperwork and be sure to read through all of the pages for your safety.
The closing process may seem time consuming and overwhelming. There are a lot of third party involvements. After doing your homework and hiring great professionals, the transaction should go very smooth.