What a buyer needs to know about the closing process?
The process of buying a home can feel overwhelming. However, when you have a strong team behind you, you will feel more confident in making that decision. By team, I mean your Realtor, lender and attorney.
Once you identify the property you want, your real estate agent will write an offer and submit it on your behalf together with a pre-approval letter from the lender, fully executed property and lead disclosures and a copy of the earnest money deposit check.
After the offer is fully negotiat- ed and accepted by both parties, the next step is to schedule septic and building inspections. The inspections are the buyer’s opportunity to have a professional inspector of their choosing inspect the home for mechanical, structural and over all integrity. The building inspector will also offer radon and water testing. The septic inspection ensures the system is in good working order. Assuming that the inspections go well, the buyers now need to turn their attention to working with their mortgage lender to get the financing process moving forward.
Typically, sometime during the next two weeks the sellers’ attorney will draft the contracts and send them to the buyers’ attorney for review and signature. After the contacts are fully executed and additional deposit money tendered, the buyers’ attorney will order a title search. A bank appraisal will also take place during this time. The bank appraisal is required on any property being financed. If it is a cash transaction, I would highly recommend that the buyers hire an independent appraiser to verify the value of the property.
Once the buyers obtain their mortgage commitment, the loan goes back to underwriting in order to get a “clear to close.” As soon as the clear to close is issued, the attorneys will schedule a closing date. On the date of the closing, the buyers will do a final walk-through of the property to ensure that the property is in acceptable condition. The closing takes place, the keys are passed and you now own your new home.