Closing is the final step in buying a residential property. It officially happens when you, as the buyer, take ownership of your new home by taking possession of the deed. Closing is often considered an important point because it marks the completion of a dream house purchase!
To get through the closing process, you must first settle up with the seller as agreed previously. You will have most likely already made the down payment and paid the inspection fees. On the closing day, you’ll sign papers to release funds from your mortgage lender to meet the home’s purchase price and execute additional legal documents. You will also need to sign papers officially transferring ownership to you.
The real estate closing process is the final stage of acquiring a home. However, the process of closing on a property might be quite challenging. Here’s what you’ll need to get prepared:
Open an Escrow Account
During the beginning of the closing process, most purchasers establish an escrow account, which is generally handled by the title company. This account contains all the money related to the sale, such as an earnest money deposit, before you officially close on the property. The mortgage provider disburses the cash to the seller and buyer once closing has ended, assuring a safe transaction.
Title Search and Insurance
Title searches and title insurance provide comfort and legal protection. They guarantee that no one else will be able to claim your property after you purchase it. A title search is an investigation of public records to identify and validate a property’s legal ownership, as well as any claims on the property. If any claims exist, they’ll need to be addressed before the sale is concluded. You should also consider buying title insurance at this time, which would cover the expense of any title claims during your ownership.
Closing on a house necessitates having an inspection done. Even the most stunning residences may have hidden problems that go unnoticed. During a house inspection, an expert or professional inspector will look for significant issues such as foundation fractures, plumbing leaks, roofing problems, electrical system damages, and other potential safety concerns or major necessary repairs.
If the inspection reveals significant problems, you have a variety of options. You can back out of the deal if the findings are unfavorable, or you might ask the seller to remedy the concerns before the closing date as a condition of sale.
Negotiate Closing Costs
Closing costs can require a lot of money, but you’re not without options. See if your lender will lower the origination fee or waive an application fee – that might help with those final financial numbers before signing!
If you must have title insurance, ask your mortgage firm if you can comparison shop to get the best price rather than paying a set fee from the insurer of their choice.
When the buyer does their final walkthrough of a property, they ensure that any previously agreed-upon repairs have been made and the seller has fully vacated. It’s common to do this on the day before the closing date.
Why You Need a Real Estate Attorney
When you buy a home, it’s not just about finding the perfect place for your family to live – there are plenty of legal aspects that need careful examination before making such an important purchase. They include closing documents, the purchase agreement, and so on. This is why enlisting legal professionals with experience in real estate closings will ensure any worries or concerns get addressed head-on.
At the Kelly Legal Group, we provide competitive closing costs with the added benefit of attorney assistance for any real estate transaction. If you’re looking for a trustworthy real estate closing attorney to help you close on your home or investment property, contact The Kelly Legal Group today by reaching out online or calling (512) 505-0053.