Did you know that around 38% of all homebuyers are first-timers? But if you’re home buying for the first time, you may not have much of an idea of what happens in the closing process.
If you’re going into the home closing process blind it can be confusing. However, if you know what to expect and have the right support it really doesn’t need to be complicated.
In this article, we’ll talk you through the real estate closing process.
Choose Your Real Estate Attorney
In certain states, you’ll need to hire a real estate attorney. Where they’re optional, you may want to hire one anyway. A lawyer will look after your best legal interests throughout the closing process. They will ensure that all conditions of the sale are documented and that all parties are allowed to execute the transaction; that is, the buyer is able and willing to purchase and, the seller holds legal title to the property and is willing to sell.
In Louisiana, title companies, led by real estate attorneys, are used. This neutral third-party will then hold all of the money for the sale. Once the sale has been finalized, they will release the money to the seller.
Have Your Buyer Inspection Carried Out
An important step on the closing process timeline is to have a buyer’s inspection carried out on the house you’re buying. This is a requirement of most home loans. The inspection will bring to light any potential red flags there may be with the structure and systems of the property you’re buying.
Meet the Mortgage Requirements
Before you made the offer on the property, you’ll have needed to have a pre-approval. Once you’ve made an offer, you’ll need to get accepted on your mortgage. You will, of course, need to meet your mortgage requirements.
This will involve a full credit check and an evaluation to ensure you can afford to make the payments.
Buy Homeowner’s and Title Insurance
As a condition of your mortgage, you’ll need to take out homeowner’s insurance. This will cover you for any damage to your property. In addition to homeowner’s insurance, you’ll also need title insurance. This will cover you if someone makes a claim on the property.
Unlike homeowner’s insurance, title insurance is a one-time payment.
Review the Closing Disclosure
This is a critical document that itemizes all of the closing costs to both you and the seller. It also outlines important information about your loan. Federal law insists that your lender gets this to you at least three days before you close so you have the time to review it.
Get the Keys and Move Into Your New Home
Once you’ve gone through the various stages of the home closing process, your funds can be released from escrow and you’ll get the keys to the house. All that remains for you then will be to move in.
Getting the Right Help With the Closing Process
Closing needn’t be a stressful affair. Throughout the closing process, you can get advice from your lawyer or real estate agent.
For help and advice on buying your first property, get in touch today.
