If you are getting ready to purchase or sell a home, you probably know that this is a big decision. One of the words that you are going to hear being thrown around a lot is called “closing.”
Based on the name, you can probably guess that this is the final step of the process. At the same time, the closing process itself does have several steps. What does it mean to close on a house and what should you expect as a homebuyer? There are several points to keep in mind.
What Does it Mean to “Close” on your House?
When you close on a house, the transaction is complete. When the closing process is complete, you want a legal owner of the home. When you purchase a home, you will work with the seller to choose a closing date. This has to be listed on the purchase agreement contract. In order to make sure both parties are satisfied with a transaction, there are several steps that have to take place before the closing process is finished.
What Parties and Components are Typically Involved in the Closing Process?
There are several parties that could be involved in the closing process. Of course, the buyer and seller are going to be involved in the closing process. In addition, each party is probably going to be represented by a real estate agent as well. Therefore, there could be multiple agents in the closing process. An attorney may also be involved in the closing process to make sure the paperwork is in order. If the house is being purchased using a mortgage lender, a representative of the lender could also be involved. Finally, there might also be a representative from the title company involved as well.
How Long Does the Closing Process Take?
The exact amount of time it takes to close on a home can Barry from closing to closing. For example, if a house is being purchased in cash, the closing process is typically shorter because loan processing is not required. If someone is purchasing a house using a loan, the closing process could take a bit longer. From the day the loan starts processing, the closing process could take anywhere from four to six weeks. On the actual date of closing, signing all the paperwork should take approximately one hour.
What Documents do Homebuyers Need to Prepare for the Closing Process?
There are several documents at home buyers need to have in order to prepare we’re closing. These include:
- Your photo ID
- Any documents or paperwork related to the title company or the mortgage you are taking out
- If you are helping with costs related to closing, you will need to bring a certified check made payable to the closing company on the day of closing
You should check with your real estate agent to see if you need to bring any additional documents related to your specific transaction.
Why Might the Closing Process Be Delayed?
There are certain situations where the closing process could be delayed. For example, there could be an issue with the home inspection. If water damage is present, something is wrong with the floors, or if there is an insect infestation, the closing process could be delayed. In addition, if you have issues getting a loan, this would also delay the closing process as well. You should also make sure that all of your paperwork is in order on the day of closing if you would like this process to proceed smoothly.
Make sure you work with an experienced real estate agent who can guide you through this process.