What to Know About The Real Estate Closing ProceduresGoing from offer to purchase to the closing of a house.
Finding a House anf Then Closing on It
Some buyers go out looking at homes and find one right away. Others search for months on end before they finally find a property they will be comfortable owning. Once you do achieve your goal of finding that dream home, the real work starts. The most enjoyable part of buying a home is finding it. From there the stress begins.
In order to get from the purchasing stage to the closing stage there are a lot of things you need to know. Closing on a house can be filled with roadblocks from start to finish. In order to have a pleasurable home buying experience it will be essential to understand how to avoid common problems.
In order for that to happen you will dramatically increase your odds of being successful by putting together a team of professionals. Two of the most vital members of your team will be a real estate agent and mortgage broker. These two individuals will be your greatest allies in making sure things go according to plan.
Of course, choosing the right buyer's agent and lender will be critical. You will need to make sure both of these professionals are vetted properly. They are going to be your eyes and ears through much of the transaction considering you have never done it before.
Once you have found you want to live in you will start doing some due diligence including all of the necessary home inspection. You will want to make sure you're not purchasing a lemon. A top notch agent can put you in touch with a competent home inspector who will thoroughly look over the property for you.
Concurrently, you should be nailing down who you will be using for your financing. Make sure you speak with a few lenders to compare rates and terms. Your real estate agent can also help with this. Once past the inspection you will be moving on to the next phase which will be gathering numerous financial documents for the lender to review.
These documents will be used to ensure you are a good candidate for a loan. You also might want to consult with the lender to see if there are any specialized mortgage programs that will be beneficial for your financial situation.
You can expect at some point for an appraisal to take place on the property. The lender will be sending an appraiser to make sure the appropriate value is there for the property. Sometimes buyers overbid on homes and they don't meet the appraisal price. If this happens you will either need to come up with additional down payment funds or the seller may need to drop their price. Sometimes a compromise is made and it is a compromise of these two things.
Getting past both the home inspection and appraisal is usually a relief for all parties involved. Once you have your financing commitment it will be more of just a waiting game to get to the closing. The last step in the closing process will be doing a final walk through of the home to ensure you are buying the home in the same condition as when you made the offer. This will be your last chance to look for problems.
If everything checks out you will be heading to closing. You will need to bring a certified bank check for any short fall in funds between the purchase price and what you are mortgaging. The closing itself won't take long at all. Most closings last between 30-60 minutes.
In the article reference above from Maximum Real Estate Exposure, you will see additional things to understand. You will be able to fill in the blanks of other crucial things to know about the home closing process. Take a look and if you have questions let me know.
Once the closing is done, you will be the proud owner of your first house!