Closing The Deal

Closing on real estate is a little more complicated than closing on a new car. If you purchase a new car, chances are you can drive off the lot with that shiny new automobile in a few hours or less. Houses are a little more complicated. A lot more complicated. Even if you make an all-cash offer and could put a cashier’s check in the realtor’s hand the same day, you won’t be able to move into the house that night. Real estate transactions involve a lot of processes and a ton of paperwork.

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Closing involves several lengthy processes including:

Escrow

Deposit

Final Inspection’Mortgage

Appraisal

Title Preparation

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Termite Inspection

Homeowner’s Insurance

Property Taxes

Since we assume you’ve been working with a buyer’s agent all along, we’ll let your realtor explain most of the tasks that need to be completed before you take possession of your new home. The tasks you’ll be directly responsible for are making the required deposit, obtaining the mortgage, making the final inspection of the property, and securing the homeowner’s insurance. The escrow, title preparation, appraisal, termite inspection, and financial calculations will be done by a third-party.

When setting your goal you probably obtained preapproval for the mortgage. Now the fun begins. You’ll be asked to provide documentation to the lender. As with all financial decisions, don’t be afraid to shop around. Websites and even radio commercials are constantly advertising financial institutions or companies that offer home mortgages. Don’t be afraid to step outside the box and try something unorthodox. A service like Rocket Mortgage or Lending Tree might offer a better deal than the financial institution you’ve been banking with for years. Secure multiple offers from lenders and choose the one that best fits your needs and costs less.

It goes without saying that you’ll be signing a ton of paperwork on closing day. If you’re not sure what a form is for, ask someone. You should have your buyer’s agent by your side at all times. You should’ve received copies of some of the paperwork before closing day. If not, read every page carefully. You don’t need any surprises on closing day. Long before closing day you should receive a copy of the seller’s disclosures. You certainly don’t want to be halfway through signing your life away when you suddenly discover that the seller mentioned that the furnace needed to be fixed! With the average closing period being between 30 and 60 days, you should have plenty of time to read each report and other paperwork as it’s given to you.


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