Closing on your first home is an exciting milestone, but it’s also a confusing process. What exactly does a real estate closing entail, how important is the property title search, and what should you know before you arrive? The answers below will help you prepare for your real estate closing and avoid any unpleasant surprises.

4 Questions to Ask Before Closing

What is a property title search?

During the title search, professionals examine public records and the deed to ensure there are no liens or other parties with a valid claim to the property. If any defects are discovered, such as a contractor’s lien or the relative of a previous owner who inherited a share of the house, the seller should correct them before the closing is completed.

What is title insurance and why do I need it?

Most property title searches are very thorough, but it’s not uncommon for a defect to go unnoticed for years. Unfortunately, if a problem with the title is not discovered when you purchase the house, you will be liable for the expenses associated with correcting it. Title insurance pays these costs for you, so you should carry coverage equal to the value of the property.

How much will my closing costs be?

The costs due at closing depend on several factors, including the selling price and the laws in your state. In Minnesota, for example, you should expect to pay any extra fees charged by the lender, as well as third-party fees for the inspections, attorney fees, and your mortgage taxes.

What should I look for in a title company?

The title company you choose will have a significant impact on the speed and ease of closing on your new home. Look for a company that performs its own title property searches, has a longstanding reputation in the community, and offers a complete range of services.

Since 1989, First Financial Title Agency of Minnesota has served agents and homebuyers throughout the Burnside/South Metro area, providing everything from property title searches to in-house abstracting. Their dedicated staff has more than 400 years of combined experience and in-house attorneys who specialize in making the complex closing process as easy and stress-free as possible. Visit their website for more on their services and to request a quote. Follow their Facebook for more tips and advice. Contact them at (952) 831-5010 to set up an appointment.