What happens before closing?

A real estate closing is the process of recording a deed and transferring the title of the property from seller to buyer. It sounds simple, but it’s more complicated than transferring a piece of paper with the door keys.  Many tasks must occur to complete a home purchase.

Immediately after applying for a mortgage loan, the costs associated with closing on your home should be provided to you.  Your lender has three days from the time of the loan application to provide a Good Faith Estimate of your loan costs so there are no surprises. Within those three days you should also receive a copy of the booklet, "Buying Your Home," which outlines the settlement process. If these two things do not occur, talk to your lender.

Other events or tasks that must happen before the closing date include:

• The closing agent talks with the seller's lenders to get loan payoff amounts, receives instructions from your lender, prorates the property taxes, and prepares instructions for you and the seller.
• The title company researches the ownership of the property, known as the title search as described in a previous blog.
• The lender prepares the loan documents and sends them to the escrow company.
• The seller makes repairs or performs whatever you agreed needed to be done so the inspection contingencies can be removed, and calls the utility companies with a final billing date.
• You, the buyer, complete the loan application, buy a homeowner's insurance policy, and call the utilities to get service set up in your name as of the closing date.
• The real estate agents ensures the closing agent has the essentials and the buyer and seller are in the loop so everybody knows when to show up, what to bring, and what needs to be completed before then.
• When the closing agent has all the documents prepared, you will be told how much money you need to bring to settlement in a cashier's or certified check.
• If your contract calls for a final walkthrough of the house within 24 hours of closing, your agent should go with you and help mitigate anything that's not right. You may discover the air conditioner has quit or the gas stove won't light. Did the seller leave all the items specified in the contract? Problems at this point could delay closing or mean having the escrow agent hold back money due the seller until repairs are made.
• During the closing, there are many people involved in everything from making sure the seller really has the right to sell you the house to recording documents at the county office.

Call Conquest Real Estate Now for More Info: (248) 569-1486