Before you become the official owner of the home you have agreed to purchase, you will have to go through the closing process. There are several steps involved, which may take several weeks (30-45 days) to complete.
If you are getting ready to close on your home, here are a few steps you will likely have to take prior to closing day:
- Open an escrow account to hold the money connected with the sale. Once the closing process is complete, the funds in the account will be distributed to the buyer and seller by a neutral third party.
- Run a title search on the property to find out who currently owns the property and whether any claims exist on the property (e.g., liens)
- Inspect the home for any structural defects, electrical or plumbing issues, pests, or any other hazards. If the inspection yields any defects, you may be able to back out of the sale or require the seller to fix the defects in order to continue.
- Decide on a closing date and complete a final walk-through of the home following the inspection.
What happens at the closing?
On the day of the closing, you will receive several documents explaining the various details of your sale. Some of these documents include:
- Loan estimate
- Closing disclosure including details of your mortgage
- Escrow statement
- Purchase agreement detailing the terms of your real estate transaction
You will then have to sign several legal documents and pay your closing costs and escrow items. You will also need to bring proof of your homeowner’s insurance, a certified check for the down payment, and identification. Once the closing is complete, you will be given the keys to your brand new home.