The closing process in real estate refers to the final steps before a property’s ownership is transferred from the seller to the buyer. Here’s what you can expect:
1. Contract Review
Once you’ve agreed on a price with the seller, you’ll sign a purchase agreement. This contract outlines the terms of the sale and is typically reviewed by attorneys.
2. Home Inspection and Appraisal
A home inspection is conducted to check for any potential issues with the property. An appraisal is done to determine the fair market value of the home.
3. Securing Financing
If you’re taking out a mortgage, your lender will work on underwriting the loan. This includes verifying your income, credit history, and the property’s details.
4. Title Search and Insurance
A title search is conducted to ensure the seller has the legal right to sell the property. Title insurance protects you and your lender from any future disputes over the property.
5. Final Walkthrough
Just before closing, you’ll do a final walkthrough of the property to ensure it’s in the agreed-upon condition.
6. Closing Day
On closing day, all parties meet to sign the final documents. Once the funds are transferred, you’ll receive the keys to your new home!
Remember, the closing process can vary depending on your location and the specifics of the deal. Always consult with a real estate professional to understand what to expect in your situation.
