Home Closing Time

Almost to the Finish Line

Pre-Closing

We are so close to the closing table! Here's what's going to happen leading up to you receiving the keys: Under Contract Inspections Obtain Insurance

Appraisal

An appraisal is an estimate of the property's value by a licensed professional appraiser. Once any problems during the inspection are solved, the appraisal will be ordered by the lender and paid for by you. The goal of the appraisal is to verify the property's value for the lender and protect you from overpaying. The contract is contingent upon whether the appraisal comes in at or above the purchase price. If the appraisal comes back short, we will return to the negotiating table.

Obtain Mortgage

You have 5 days (depending on what the contract says) from the date of contract execution to begin the mortgage loan application. During the 30-45 days before closing, the lender will be finalizing your mortgage.

Survey

A survey is often unnecessary unless a lender or title company specifically requests it. If a survey is required, the title company or I will order this for you. The survey is a sketch showing a map of the property lines/boundaries, among other things. The survey will show if there are any encroachments on the property. This is paid for by the buyer and is reflected in your closing disclosures.

Title

The title company will conduct a title search to ensure the property is legitimate and find out if there is anything that could impact your ownership, like any outstanding mortgage liens, judgments, restrictions, easements, leases, and unpaid taxes associated with the property. Once the title is found to be valid, the title company will issue a title insurance policy that protects lenders or owners against claims or legal fees that may arise over ownership of the property. You will see this reflected in your closing costs.

Clear-to-Close!

The magic words! It means the mortgage underwriter has officially approved all documentation required to fund the loan. All that remains is the actual closing process.

Closing Time!

Q: When do we do the final walk-through?

A: The final walk-through is precisely what it sounds like – it allows the buyers to do one last walk-through before closing to confirm that the seller made the repairs that were agreed upon and to make sure no issues have come up while under contract. We will typically schedule to do this right before closing. You've got the "clear-to-close," and we've scheduled our closing date and time – let's answer some questions you may have about closing day:

Q: Who will be at the closing?

A: Situations vary, but you can expect some combination of these folks: Buyer (that’s you!), seller, real estate agents, closing agent/attorney, mortgage lender, and title company representative.

Q: What will I do?

A: Stretch those fingers and get ready to sign, sign, sign. At closing, the seller will sign ownership of the property over to you, and you’ll sign to receive possession.

Q: What should I bring?

A: Bring a photo ID and a cashier's check to pay closing costs (if you didn't wire it). Your agent will tell you any other documents specific to your situation. The closing process is relatively simple, but be prepared for A LOT of paperwork. (And always, always, always ask if you have a question along the way.) The good news is once you've signed the last page, it's time to get a hold of those keys and celebrate!