Closing is a term you will hear in conversations about home buying, often attached with other terms such as stress and worry. It doesn’t have to be that way. Closing is the point in time when the title of the property is transferred to the buyer; it just happens to be a process which involves some research and paperwork. Broken down into some abbreviated steps, the process goes something like this:
If you are obtaining a loan, don’t be afraid to shop around and get several quotes. Your lender should then provide you with information about your loan costs and the settlement process.
Once the seller accepts your offer, you will then need to select a settlement agent to prepare documents and handle the closing process from there.
It’s then good to have a title professional or title officer do some research related to your home’s title. A title professional will work to resolve any issues they may find before you go to closing.
Next, while not required, a home inspection is one of the most important things you will want to do to ensure you aren’t stuck paying for any unknown damage or needed repairs, after-the-fact. A final walk-through will be one of the last steps in closing.
Finally, closing day will involve signing documents and paying closing fees, which are customarily divided between buyer and seller, depending on fee types.
This is a simplified breakdown of the closing process. For some more detailed information, Investopedia offers some good advice in their 12 steps to closing a real estate deal.
The closing process may seem overwhelming, but we are here to help you with the process, here at Michael & Decker. We have knowledge of the community, housing prices and market conditions, and we can help you with handling your paperwork, managing deadlines and recommending professionals to help with your whole buying experience.
You will also find tons of helpful information through the U.S. Department of Housing and Urban Development.