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What to Know About the Closing Process
When you're in the process of buying a house, there's one day you look forward to above all others: closing day. While your eyes may be fixed firmly on that day when the keys to your new home are handed to you, the process of getting there isn't always smooth.
As always, our real estate agents are here to help. Knowledge is power when it comes to buying your home, and it's always our goal to make sure you're ready and well-informed. Here's what you need to know about what happens on closing day and the process leading up to it.
The Closing Process
How long does the closing process take? That's one of the questions we get asked most often, and there's no simple answer. As a general rule, the closing process takes anywhere from 30 to 60 days once the offer is accepted.
This span of time allows for some important events to take place, including steps like the home inspection, appraisal, funding, and title search. The following are the major steps buyers need to take leading up to closing day (though they don't always happen in this order):
- Finalize your homeowners insurance. Because your insurance premium premium will be part of your closing costs, your closing will be in limbo until you've decided on a homeowners insurance company.
- Secure your closing funds. Have your down payment and closing costs ready. The amount the buyer pays in closing costs depends on what you and the seller have negotiated, and your lender will let you know the final amount you will need to pay before closing day.
- Decide on your title vesting. Finalizing title vesting is a requirement before your loan documents are complete. This essentially outlines what will happen to the home if one or more of its owners die.
- Request a final walk-through. It's best to request a formal walk-through of the home 24 hours before closing. This will give you a chance to make sure that the home is in agreed-upon condition and all repairs have been made.
- Read your closing documents. Closing involves a good-sized stack of paperwork to review. Ask your attorney or real estate agent for it in advance, so you won't have to sit down and read it all on closing day.
Closing Day
Once the final day arrives, it's important to know what to expect. It's not quite as simple as handing over a check and being given a key, though if you've done your homework, that will happen. The big events of closing day include transferring funds from escrow, providing mortgage and title fees, and updating the deed of the house to your name.
What do you need to bring to closing? That's arguably the most important thing soon-to-be-homeowners need to know, and this list will have you ready to dot your I's and cross your T's.
- Closing paperwork. Be sure to ask your real estate agent what paperwork you need to bring. Common documentation required of buyers includes a copy of the purchase agreement and closing disclosure.
- Proof of homeowners insurance. Lenders require you to have insurance before closing, so make sure you have proof of your homeowners insurance handy.
- Photo ID. Be sure to have your driver's license, passport, or another form of government-issued ID.
- Cashier's or certified check. You'll be paying your down payment and closing costs on closing day, typically in the form of a cashier's check or a wire transfer from escrow.
Contact us today to learn more about the process of buying your home. We're here to help every step of the way.