What To Anticipate During The Closing Process of a Buying a Property
Congratulations! You have found the perfect home, and it’s now time to finish the process and get the papers and everything signed over to you. This property should have all your wants and needs and fit your price range at this time. You are at the stage where you have already placed the bid on the real estate property, and the bid was accepted. This is a big day for you, as you get ready to sign your designation on the dotted line and finish the process of buying your new home. Although you are not quite finished yet, there is one last step you have to finish which is- the closing process. You will want to know some important things before closing in on the property.
Please read carefully below as to what you should expect and how to prepare for the closing process.
Clear up all contingencies:
Usually, when someone takes over the real estate property, there are a few contingencies that the buyer must do before the transaction is legal. A few common contingencies would be the home inspection, which grants the buyer the right to have the home looked over by a professional. This way if something is wrong- the seller is in control to fix it. An Appraisal contingency will tell you the value of your home. Another common likelihood is finances. This contingency will allow you to back out of the ownership on the property if your mortgage does not get approved. As stated in your contract, you will have a certain period of time to do this.
Read everything over a couple times:
With any big purchase or legal document, it’s always crucial to read over the fine print and you could also get a second opinion to make sure everything you read is correct. It is good to ask your lawyers for all the documents before the closing date. This will ensure everything is correct before you sign. During this stage, you should also read over your mortgage documents to make sure everything is in proper order.
Final mortgage approval:
The final mortgage approval means that your loan has gone through the underwriting process. Professionals will look over your documents and make sure your finances are correct and there are no misleading loans on your submission. During the final mortgage approval, the underwriter will check your credit score and make sure your finances are in the same order as they were when you were approved for the loan.
Do one final walkthrough:
Depending on your agreement, most contracts allow the buyers to walk through the home one final time within 24 hours before closing. This is to make sure the previous homeowners are out and you can double check the condition of the property. Since you should have acquired a home inspection, this final walkthrough should go over anything that was to be fixed by the sellers and to make sure the repairs were completed.
Bring the right documents with you:
You should always have the necessary documents with you at this stage of the game, which will include:
Your homeowner insurance
Your home inspection report
Your contract with the seller
Government-issued Photo Identification
Paperwork for loan approval from the bank
Be prepared to sign your fair share of paperwork during this process. You want everything to be done legally and to benefit you.
Ownership:
This is when the buyer will be transferred the ownership from the seller. A title company will check over the taxes, deed, and other property essentials to make sure they are in good standing. After everything comes back in proper form, both parties will sign over the papers. You will now become the new official owner of the property!
For new homeowners who have not gone through this process before, it might seem like a lot of work. Ultimately, this is to ensure you are legally backed up and everything is set in place for you. You won’t regret putting in the extra work to ensure everything is done right. Good luck with this process and have fun being a new property owner!
Please read carefully below as to what you should expect and how to prepare for the closing process.
Clear up all contingencies:
Usually, when someone takes over the real estate property, there are a few contingencies that the buyer must do before the transaction is legal. A few common contingencies would be the home inspection, which grants the buyer the right to have the home looked over by a professional. This way if something is wrong- the seller is in control to fix it. An Appraisal contingency will tell you the value of your home. Another common likelihood is finances. This contingency will allow you to back out of the ownership on the property if your mortgage does not get approved. As stated in your contract, you will have a certain period of time to do this.
Read everything over a couple times:
With any big purchase or legal document, it’s always crucial to read over the fine print and you could also get a second opinion to make sure everything you read is correct. It is good to ask your lawyers for all the documents before the closing date. This will ensure everything is correct before you sign. During this stage, you should also read over your mortgage documents to make sure everything is in proper order.
Final mortgage approval:
The final mortgage approval means that your loan has gone through the underwriting process. Professionals will look over your documents and make sure your finances are correct and there are no misleading loans on your submission. During the final mortgage approval, the underwriter will check your credit score and make sure your finances are in the same order as they were when you were approved for the loan.
Do one final walkthrough:
Depending on your agreement, most contracts allow the buyers to walk through the home one final time within 24 hours before closing. This is to make sure the previous homeowners are out and you can double check the condition of the property. Since you should have acquired a home inspection, this final walkthrough should go over anything that was to be fixed by the sellers and to make sure the repairs were completed.
Bring the right documents with you:
You should always have the necessary documents with you at this stage of the game, which will include:
Your homeowner insurance
Your home inspection report
Your contract with the seller
Government-issued Photo Identification
Paperwork for loan approval from the bank
Be prepared to sign your fair share of paperwork during this process. You want everything to be done legally and to benefit you.
Ownership:
This is when the buyer will be transferred the ownership from the seller. A title company will check over the taxes, deed, and other property essentials to make sure they are in good standing. After everything comes back in proper form, both parties will sign over the papers. You will now become the new official owner of the property!
For new homeowners who have not gone through this process before, it might seem like a lot of work. Ultimately, this is to ensure you are legally backed up and everything is set in place for you. You won’t regret putting in the extra work to ensure everything is done right. Good luck with this process and have fun being a new property owner!
