What is involved in the closing process in real estate?
Closing is the last step in the home buying process that involves the transfer of the deed or the legal title to the buyer. At this stage, both the seller and the buyer are given the closing documents such as the loan paper work and the title and the key is handed over to the new owner. Basically, the ownership of the house will be transferred to the buyer. It is also the time for the buyer to make any last minute adjustments to the transaction. Here are activities that take place during close and what you need to have as the buyer;
Before the closing day, you should ensure that you have all the paperwork that you have been given during the home buying process. These include;
· Flood certification
· Home appraisal
· Loan estimate
· Closing disclosure
· Inspection reports
· Proof of mortgage and homeowner insurance
In most cases, your contract will allow you to do a walk-through of the home a day before closing. This is meant to give you a chance check whether the seller has moved out of the property and whether it is in a livable or usable state and in line with the sale contract.
If you establish that the home has problems, you can ask the seller to provide money and cover the critical repairs or have the closing postponed.
There are several people who must be present during closing. These are
· The home seller
· The closing agent who could be working for the title company or the lender
· The lender or the mortgagee
· The buyer or the mortgagor
· An attorney who represents you
· A title company representative
The latter will avail written evidence of the property ownership. You will also need a picture identification bearing your full legal name in order to complete the transaction.
During closing, you will receive several documents including a mortgage note, closing disclosure, certificate of occupancy and mortgage or deed of trust.
The buyers and the seller don’t necessarily have to meet for the closing process to take place. The two parties can sign their documents separately. If you are the buyer, you can meet with your attorney a few days before the closing date and sign your mortgage and purchase documents. This appointment will not take you more than one hour. Your attorney will carefully go through the documents and check for any discrepancies.
The attorney will also instruct you to sign the legal papers. You should come with down payment or deposit needed to close the purchase during this visit. The seller’s attorney will have forwarded all the documents you require to your attorney. They will use this opportunity to examine the documents in your presence. When the closing day comes, your attorney will the money needed to close the sale to the seller’s attorney. The seller’s realtor will then be notified to hand over the keys to you and your realtor.