Once you have found your dream home, you want to be able to move in as soon as possible. Because of this, closing on a new home is an exciting time. If you’ve just moved to Ohio or are purchasing a property in the state for the first time, it’s crucial to understand how the process works. Here’s everything that you need to know about house closing.

Your Ohio House Closing Questions Answered

How does the process begin?

After you’ve submitted an accepted offer and signed the contract, you may then be required to provide the seller’s realtor with good-faith money to secure your payment.  Or, if the Seller has no realtor or attorney, the Seller or sometimes, the Escrow Agent or Title Company may hold the good faith funds  At that stage, the signed contract is submitted to a title company based in Ohio,  unless the Purchaser has a Lender who will initiate this process with the title company the Purchaser chooses.

Why is title insurance needed?

A crucial part of house closing is purchasing title insurance in the interest of protecting the lender. It’s designed to safeguard the mortgage holder from losses that might otherwise occur if there are any title defects, such as an unknown lien on the property, forgery of documents, a dispute over the property’s boundary lines, or an illegally produced deed.  The Lenders Title Insurance only protects the Lender.  It is recommended that the Purchaser obtain an Owners Title Policy, which protects the purchaser.  There is additional cost for this, but it is a cost paid only one time for as long as the Purchaser owns the property, and it is well worth the one-time investment, should the Purchaser have a title issue.

What do state laws require?

In Ohio, sellers can provide buyers with a residential property disclosure form that outlines any potential problems that exist in the home, such as electrical issues, lead-based paint, damaged appliances, and roofing system leaks. Sellers are only required to disclose the problems that they genuinely know exist, and the wording in the contract provides a specific reference that the “statements of the owner are based on the owner’s actual knowledge.” Buyers should make sure to receive a completed copy of the form before closing.

What is closing protection coverage?

By state law, title companies must offer clients closing protection coverage. Supplied by the underwriter, it’s designed to protect the client from fraud, misappropriation of funds, or theft. This is a voluntary purchase, but it is standard that it will be brought up during the closing process.
 

Homebuyers throughout Hamilton and all of Southwest Ohio can trust in the team at All Points Title & Closing to handle the closing process efficiently. Serving the community since 1986, this escrow and title insurance company goes through the process step-by-step to ensure that your journey to homeownership goes smoothly. They proudly carry an A+ rating with the Better Business Bureau® and are members of the Greater Hamilton Chamber of Commerce and the Ohio Land Title Association. Visit their website to learn more about how they can help, or call them at (513) 863-7600 to speak with a representative.