Buying a Home? What Really Happens During the Closing Process
Updated: Dec 17, 2021
Buying a home can be stressful, especially when it comes to understanding the complicated details of the closing process. It’s important that, as a buyer, you are aware of what’s happening and why. To make it easier for you, here’s a simple breakdown of what you need to know about the closing process.
Steps of the Closing Process
From a buyer’s perspective, the closing process signifies when the task of buying a home comes to a close and ownership of the property is officially transferred. First, the property title is transferred from the seller to you, the buyer. Then, the proceeds of the sale are sent to the seller. Finally, if you’re financing the property purchase, you sign the mortgage note. After that, you’re officially the owner of a new home!
The closing process begins as soon as the seller accepts your offer, and the official closing date usually follows 30 to 60 days later. The closing date as well as any inclusions and exclusions are included in the offer, which is agreed upon and signed by both the buyer and the seller.
In between the accepted offer and the closing date, the following actions occur:
The home inspection is completed. This step is optional but highly recommended.
The purchase agreement is finalized.
If the buyer is financing the property purchase, the mortgage application is completed.
An appraisal of the property is completed by the mortgage company.
The final loan is approved by the mortgage company.
A final walkthrough is completed to ensure that the home is in the same condition as it was when the offer was signed.
As a dog owner, you always want to make sure your furry friend feels comfortable with big life changes. Your pet may feel stressed watching you pack up your current house. Now is a great time to start exploring dog parks and walking trails near your future home! Helping your dog get to know their new territory will make the transition that much easier come closing day.
What to Expect on Closing Day
Closing day is often an exciting time for buyers. At this time, the seller signs the documents needed to transfer ownership of the property to you. Documents that you’ll be signing include the settlement statement, which lists all costs related to the sale; the mortgage note, which states that you promise to repay the loan; an appraisal acknowledgment; and a mortgage or deed of trust securing the mortgage note. All costs associated with the closing are typically paid by the buyer.
In order to complete the paperwork listed above, you’ll need to have your photo ID, have completed a wire transfer from your bank to the title company, and any documents needed for the title company or mortgage loan office.
Closing Day in a Covid-19 World
Closing processes may be slightly different now with the safety precautions surrounding Covid-19. Often, signings are completed with only buyers (with masks) in the closing office, from their car window, or not even in the office at all. Your realtor will walk you through all of the closing options.
How We Can Help
As your real estate agency, The Urban Dog Group promises to work closely with you to ensure you stay in-the-know during the closing process. We will keep you up-to-date on each step and will be available to answer any questions you may have.
Stay tuned for our August post on the closing process from the seller’s perspective!