For first-time homebuyers, the home closing process can seem very tedious, time-consuming and confusing. What exactly goes on during when closing on a home and what’s needed on your end? Here’s a breakdown of the entire process:
Contracts usually allow buyers to have a final walk-through within 24 hours of closing. During this walk-through, the buyer has a chance to make sure the seller has vacated the property, the home is in the same condition, and any contractually required repairs have made been. If issues arise during a final walk-through, the closing can be delayed at the buyer’s request.
You should also receive the HUD-1 settlement statement so you have time to review before the official closing. Review the statement closely to make sure there are no surprises or discrepancies, and don’t be afraid to ask your realtor questions if you have them.
Besides the buyer and seller, the real estate agents for both parties as well as representatives from the lender and title company will be present at closing. During the actual closing, a buyer’s main role will be signing paperwork…and lots of it. Buyers will review and sign documents related to both their mortgage and the transfer of the property. The buyer will also be asked to pay the closing costs and any fees, usually an escrow payment, associated with the homeowner’s insurance and property tax.
Once the documents have been signed, the keys to your new home will be officially yours! Be sure you also walk out the door with the final HUD-1 settlement statement, the Truth-in-Lending statement, deed of trust, and mortgage note if applicable.
Tips & Takeaways
• Many first-time homebuyers may be under the impression that a closing is quick, but unfortunately that’s not the case. Closings usually take around two hours due to the amount of paperwork involved, so plan accordingly.
• Always make sure a real estate agent is with you to go over the paperwork before you sign it.
• Remember that personal checks are not permitted at the closing to cover any escrow payments or closing costs. Be sure to plan ahead and secure a cashier’s check for the full amount due so you don’t inadvertently delay closing.
• Don’t forget that as the new owner of the home, it’s now your responsibility to get the utilities transferred into your name and turned on. Do this as soon as possible to avoid having to move into your dream home in the dark!
Now that you know the basics of the closing process, it’s time to find a real estate agent who can guide you to the home of your dreams. Contact the experienced agents of Coast 2 Coast Realty at 1-877-585-RELO.