The closing process is the last step you must go through before achieving your dream of homeownership. This is when the deal is finalized, and the property is officially transferred into your name. Although it’s an exciting event, it can be full of challenges if you aren’t properly prepared. Fortunately, your real estate agent will help you navigate the process to ensure it goes as smoothly as possible. Here’s an overview of what you can expect.

How Do I Prepare to Close?

Once your offer on a home is accepted, there are several tasks you must complete before closing. First, you’ll schedule the home inspection and appraisal. These reports will inform you if there are any major repairs that need to be addressed and how much the property is worth. If the inspection reveals problems, or the appraisal is lower than expected, your real estate agent will advise you on negotiating a better deal.

Next, you’ll secure financing. Although you may be pre-approved for a mortgage, you must be issued a final approval from the lender. You’ll also need to have a title search performed to verify that the home’s title is free and clear of issues.

What Causes Delays?

On average, the closing process takes about 30 to 45 days; however, there can be issues that arise and cause delays. For example, the purchase agreement often includes contingencies, which are conditions that must be satisfied before the transaction can be finalized.

If there’s a home inspection contingency, you may request the seller to make repairs before closing. For an appraisal contingency, you may renegotiate the sale price. Additionally, any issues that arise during the title search or when underwriting your loan can delay closing.

What Happens on Closing Day?

Ask your real estate agent what you’ll need to provide at closing to ensure you have all the appropriate documentation. At a minimum, you must bring your ID, the closing disclosure you receive from the lender, and a cashier’s check to pay the funds you owe at closing. There will be a great deal of paperwork to sign, and your agent will explain anything you don’t understand. Finally, you’ll receive the keys to your new house.

If you’re beginning your house hunting journey, turn to the real estate agents at SC Realty for reliable representation. They’ll keep your best interests in mind as they guide you through every stage of the homebuying process, including a successful closing. Based in Honolulu, HI, they have extensive knowledge about the island’s neighborhoods and will help you find a property that meets your needs. Call (808) 591-6277 to schedule an appointment, or visit their website to browse current listings.