Completing a home sale isn’t as simple as giving the seller a check in exchange for the keys. The real estate closing process includes applying and getting approved for a loan, establishing insurance, and meeting with the seller, agents, and legal representatives to sign all the associated documents. As a home buyer, read below to understand your role in a real estate closing.
How Residential Real Estate Closings Work
Send Purchase Agreement to Seller
When you decide to buy a home, you’ll send a purchase offer to the seller to review and sign. The document should include any contingencies that must be met for the sale to go through. When the offer is accepted, you’ll provide a check to the seller as a deposit, which is typically a small percentage of the purchase price.
Schedule a Home Inspection
Before the transaction is finalized, you should know about any property defects that could influence the decision to buy. That is why you should schedule a professional home inspection. Having a detailed report from a certified home inspector is also necessary when reaching out to a lender for a mortgage loan.
Wait for Loan Approval
Once you send the mortgage application, including the inspection report, to a lender, they’ll begin the review process. Lenders consider income, credit scores, tax history, and additional information to determine whether to accept or reject an applicant’s request. The lender will provide an estimate of closing fees and mortgage rates. They’ll also appraise the property, determining whether its value reflects how much you plan to pay. It could take months to complete the loan approval process.
Get Homeowners & Title Insurance
To secure the loan and close the deal, you’ll also need to show the lender your homeowners insurance policy, so start looking into providers as soon as your purchase offer is accepted. It’s also wise to get a buyer’s title insurance policy. This will waive your liability for any of the previous owners’ discretions.
Review the Closing & Disclosures Notices
In the final stage of the process, you’ll receive a closing notice from your attorney or title agent. Similar to an invitation, it includes the time, date, and location of the real estate closing as well as who will be there and what documents you’ll need to bring. You should also receive a disclosure notice in the mail. It states your obligations for closing and ongoing house costs. Review the information carefully and bring up any concerns before the meeting.
As real estate closings are complex, contact the professionals at Bernardini Law P.C. for help. Based in North Andover, MA, and serving clients in the Essex County area since 2011, the real estate attorneys will review all documents to ensure there are no oversights or delays in the process. To schedule a consultation, call (978) 794-5525. Visit them online to browse their services.