Steps To Closing A Real Estate DEAL
The closing process in a real estate transaction can take from one week to one month. Within the time frame according to Investopedia there are 12 lengthy steps one needs to consider. “Closing occurs when you sign the papers that make the house yours. But before that magical (and often stressful) day arrives, a long list of things has to happen.” Says Amy Fontinelle author of “12 Steps To Closing A Real Estate Deal” Starting with opening an Escrow is an account held by a third party on behalf of two parties in a transaction. Because there are so many things that have to happen to complete a home sale, the best way to prevent either the seller or the buyer from getting ripped off is to have a neutral third party hold all the money and documents related to the transaction until everything has been settled. Then doing a title search and obtain title insurance. Very important as it provides security as to making sure the home doesn’t have any liens. Meaning another part can claim the property if not transacted properly. Finding an Attorney is essential
This is an optional step if you want to get a professional legal opinion on your closing documents. Even most well-educated people can’t completely understand their closing documents. Negotiating Closing Costs Watch out for junk Mortgage fees as to administrative fees, application review fees, appraisal review fees, ancillary fees, email fees, processing fees and settlement fees. Complete the Home Inspection is not required, but if you find a serious problem with the home. Make sure to get an inspection due to It providing an opportunity to back out. Completing a pest inspection to makes sure they’re isn’t termites destroying the wood (optional). Renegotiate the Offer is only suggested if inspections find any problems. Lock your Interest Rate, If you have a good lender it will watch interest rates closely for you and tell you when rates are at a low point so you can lock them. Remove Contingencies like Obtaining financing at an interest rate not to exceed a certain percent that you can afford. The home inspection not revealing any major problems with the home. The seller fully disclosing any known problems with the home.
The pest inspection not revealing any major infestations or damage to the home. The seller completing any agreed-upon repairs. Funding escrow; the purpose of this money is to let the seller know that you are serious, or earnest, about your intentions to purchase the home. Final Walkthrough meaning just a final walk through to make sure no damage has occurred. Sign the Papers the last step. Just making sure you read all the papers properly. It may seem like the closing process is a lot of work, but perhaps the worst part is the waiting. Most of the time, you’ll just be sitting on your hands, waiting for someone else involved in the transaction to come through. So find something enjoyable to occupy your time and distract you while you wait, and feel secure in the knowledge that you’ve done your research and know how to make your closing process go smoothly. Says Amy So definitely being patient and know it will come to pass.