The Closing of a House in 7 Easy Steps

Oct 12 | 3 minutes read
The Closing of a House in 7 Easy Steps

What to anticipate as a buyer throughout the house closing procedure

You must have a real estate lawyer on your side during this procedure. You'll require somebody who can clarify all of your legal paperwork so that you may close, obtain title, and evaluate the contract.


Set Up an escrow account.

You'll need to open one immediately if you didn't already for your earnest money deposit. The money required to complete the property purchase transaction is kept in an escrow account, which is a third party account. Tax and insurance payments may also be made using escrow accounts.


Secondly, secure title insurance

In order to ensure that the property is free of liens and that the seller has the legal authority to transfer ownership to you, your lawyer will do a title check, looking up public records.

In the event that there is a flaw in the granted title for the property, title insurance is designed to shield you from financial loss. It protects you if:

  • False title
  • Taxes and assessments owing
  • unidentified or unreported heirs to the land
  • Errors caused when submitting and documenting legal documents

The cost of title insurance is not a recurring expense. It's really a one-time cost included in closing expenses.


A last review or inspection

You should do an inspection before closing on the house, unless you've waived that condition. You'll be able to resolve any issues or flaws this way and steer clear of unpleasant surprises once you've moved in.


Submit the mortgage

You must complete a mortgage application before closing. If you are already pre-approved, which is highly advised, this process goes considerably more quickly. In order to confirm that the house is genuinely worth the amount they are loaning you, your lender will also want a home evaluation. You might need to renegotiate the home's price if the assessment is low.

The lender will outline your loan terms, closing costs, and an estimated closing date after approving your application.


Complete and deliver your board package (co-ops)

To complete and submit your board package when purchasing a co-op, you will need to collaborate with your agent. The evaluation period varies, but it usually lasts six to eight weeks. If everything seems good, the board will schedule an interview. After the interview, you need to hear something within a week.


Attend close and finish your paperwork.

You're on the verge of winning. You must bring the following paperwork and your real estate lawyer to this meeting:

  • An ID from the government, such as a driver's license
  • receipts for wire transfers or cashier's checks for the remaining closing costs you must pay

You'll feel as though you're signing a tonne of legal paperwork because, well, you are. You will look over and sign:

  • Disclosure declaration for escrow: Describes the taxes and insurance costs that will be incorporated into your monthly payment.
  • Act of trust Assurance that, in the event of failure, the lender may foreclose on the property
  • Note of Promissory: Declares your intent to pay back the debt.

Don't let the legalese intimidate you. You can ask any questions you have and get assistance from your lawyer as you complete the documents. Additionally, it's customary to include a right to cancel clause, which normally provides you a few days to get out of the agreement if necessary.


Get the keys and enjoy!

The wait is frequently the most difficult step in all of these procedures, which can seem daunting. It's only a matter of moving in, celebrating, and decorating when you get the keys.

Add new comment