The closing process from a buyer’s prospective is different from the seller’s. Each of the parties require and expect different things from one another. You might think that it’s over when you finally make an offer on a house and it’s accepted, but it’s not. Here are the closing steps for the buyer:
Schedule a home inspection
It is an optional part of the process, but not completing it is a huge risk. The home inspection gives you a chance to withdraw in case you find something seriously wrong with the house like foundation cracks. You can also negotiate with the seller and have them fix the problem or you to fix it yourself while asking the owner to lower the sales price to help you pay for the expenses of repairing the home.
A pest inspection should also be done. It’s different from a home inspection and its goal in to learn if there are pests in the house. If there are any, the mortgage company may require you to take care of them before closing.
Open an escrow account
This keeps the money and all important documents relating to that specific sale safe and prevents any of the parties from getting defrauded in the process. Funding the account gives the seller an assurance you are going to buy the property and it is okay to take it off the market. If the seller backs out of the deal, you are refunded the cash and if you go back out of the deal (without legal reasons like a failed home and pest inspection), the seller may get the earnest money deposit.
Do a title search and purchase title insurance
These are important parts of the closing process. These are the documents that make sure no one else will claim that the property belongs to them later on. It guarantees that there is no third party claiming the property and the seller is the owner.
This is the last step of the closing process and it is the most important.
Remember that buying a home requires a series of complex transactions and it is good to have a real estate agent helping you. The agent knows and understands the home buying process. This means you have a much less chance of getting it wrong or getting a bad deal with a real estate agent involved. The agent also takes care of some of the things you might not have time for.
Closing day is here and before you sign the papers and release the escrow money, it is good to take a look around the house to ensure everything is in order and nothing has been damaged or altered since the inspection was done.
After this, it is time to go through the mountain of paperwork involved in the real estate closing process. Take your time and don’t feel rushed to make sure you do everything right. If you have any questions, ask your realtor.