This time, all the home inspections are done. You also have your homeowners insurance now. It is time to ‘close’ the transaction. Generally, with everything being in order, the closing process should go as smooth without any hitch as the property is being transferred to your name.
But before it is all over, it is better to know what happens and what you can expect when the deal is sealed.
What Goes in a Closing?
First of all, what do you think is the most important thing that you need during the closing? It is patience, so they say. It can be quite a long process and with that, an hour might not be enough. It is better to take a half-day or a day off your work to close the transaction for your property.
A good advice when scheduling a closing is to have it around the 25th of the month. Instead of scheduling it for the month’s last day, this way you can have just enough time to straighten out any hitches and last-minute problems that just might occur. If there’s problem and it’s the end of the month, you will have increased the closing costs.
About 24-hours before the closing, you are usually allowed to have a final walk-through inspection so that you can determine if there’s any damage done to the property before contract signing. With that, you can negotiate with the seller with any repairs necessary. When going to the closing, make sure that you take all the documents with you.
What Do You Need to Bring?
The documents you need to bring with you include the proof of homeowner’s insurance, the good faith estimate along with several others. Bring a copy of your contract, inspection reports and any document that you had delivered to the bank, as well. It’s important to bring all the documents so that every can be sorted out in order before the contract is signed.
The closing practices really vary state to state and sometimes even from locality to locality. However, generally, the parties present at the closing includes the home seller, the seller’s realtor agent, a representative from the Title company, attorneys for the buyer and lender, the lender, the buyer and the closing agent.
What Do You Do?
In the closing process, the seller will sign some particular documents in order to transfer the ownership of the property. When the documents are signed by the seller, you will receive and sign the documents that relate to the property’s ownership and mortgage agreement. This time as well, you will pay for any closing costs as well as escrow payments.
During the closing, you will receive a settlement statement which details all the costs that relates to the home sale. There is also a mortgage note which states the promise of the buyer to repay the loan and a deed of trust that secures the mortgage note.
This is basically what happens during the closing process. What can go wrong? There are a few hitches that can happen like when the financial circumstances of the buyer change, any damage to the property, etc. For this reason, it’s important that the property is inspected 24-hours earlier and that the closing is scheduled a few days before the end of the month.