Congratulations on the far you have come in securing a property. Any first-time homeowner is keen on details when closing on a house. It is imperative to know what to expect to ensure a smooth closure. Do not hesitate to call pro title software the experts in closing a property.
Here is a checklist that outlines your decisions, actions, and expectations.
Table of Contents
Open an Escrow Account
An escrow account is a third party that oversees the transactions between the buyer and seller. Typically, a property selling transaction can span many weeks. A neutral party ensures neither the seller nor the buyer cheats the other in the process. The escrow account holder can hold documents, money and further critical details related to the purchase.
The escrow account moves money and documents to the seller and the new homeowner at closing. Transfer happens when everything is clear between the two parties, thus, ensuring a safe and efficient transaction.
Confirm All the Contingencies are in Place
These are essentials that a buyer has to be in place before parting ways with a real estate company. A new home has the following contingencies;
- Home inspection contingency– a professional inspects the home and gives an okay for occupancy.
- Appraisal contingency-your provider invites a third party to evaluate and attach a fair market value to the property.
- Financing contingency- your loan allows a client t backup from a home purchasing business. It provides a period to obtain a mortgage.
Title Clearance and Insurance
clear the title deed to allow you legally own the property. you can talk to pro title software to search the title and confirm the legality of the piece with the public land records in your state.
title clearance is a critical process because it protects you from unwarranted claims from relatives who may surface with a claim to the land. address any claims before the buyer settles for the property.
title insurance protects the owner from financial loss sustained from a lousy title deed. indemnity insurance protects the real estate company and the mortgage firm against damages and losses stemming from title defects.
Mortgage Approval
A homeowner should ensure the underwriting process is transparent. An underwriting real estate agency confirms that the information you have provided on your finances is accurate. They investigate any false claims for identity and loan payment ability.
Revise Your Closing Disclosure
Countercheck the closing disclosure against the loan estimates extended to you by your financier at the beginning of the process. Seek clarification if you detect any discrepancies. Do not overlook any issue; it can potentially grow into a problem in the future.
Make a Pre-Visit to the Property
The new homeowner is entitled to a final walk around the home before closing. The visit gives you clarity for your expectations. For instance, you need to confirm that the previous owner has vacated and if the house is unoccupied, inspect the state of the property at the time. The property should be in the condition agreed upon in the initial contract. Before closing, the seller needs to attend to repairs, renovations, and remodeling,
Carry Closing Documentation at Closing
You have walked the long journey and can’t wait for closing. Ensure you bring the following;
- Evidence of valid homeowners’ insurance
- A copy of the purchase agreement with the seller
- Home inspection report
- Mortgage documentation required by the lender
- A valid identification cards. The name on your ID should be the name you want to appear on the title deed. If you are a newlywed couple, you need to make the necessary changes before closure.
Hire an Attorney
Hiring an attorney is optional. However, any new homeowner should know that acquiring real estate involves many procedural formalities. Unless the buyer is a lawyer, even a well-educated client can find it challenging to understand the legal jargon.
A property lawyer can ease the demands and offer advice. You’ll also sign several documents and may need someone to explain them to you.
Take your time to go through the process and refuse to respond to pressure from any party. Once this exercise is over and you are satisfied, you’ll get the keys to your new home!