Did you know that more than 5.6 million people in the United States of America bought homes in 2020? One of the most exciting days in the life of a first time homebuyer is the day that the real estate closing process comes to an end and you become a smart homeowner for the first time.
Once you’ve scoured over the real estate market and found that perfect home, you’ll want to put an offer in for it. There are a lot of things that need to happen between your offer getting accepted and the real estate closing process coming to an end and it is important that you know what to expect.
The good news is that you’ve come to the perfect place to learn more about what to expect with the closing process and the best way to navigate the housing market to get the right home for you. Continue reading this article to learn more.
Choose a Real Estate Attorney
The first thing that you’ll want to do at the beginning of the real estate closing process is to find a reputable real estate closing attorney in your area. This attorney helps to handle all of the paperwork and fine details with the transaction for buying your new home.
In some states, you’ll have both an escrow agent and a real estate attorney that you’ll work with to get everything together for closing on the home. Make sure you research the requirements for your state.
Get Homeowners Insurance
The next step in the real estate closing process involves you purchasing homeowners insurance for your home. The lender that provided the money for the purchase will require you to get homeowners insurance in order to close the transaction. This coverage is important for your investment as well as theirs.
Get Title Insurance
There is another insurance that you’ll want to get during the closing process and that type of insurance is title insurance. The title is what gives you ownership of the home and the land that it is on. It is the document that provides proof of ownership. Getting title insurance will protect you in the event that a neighbor claims the property is there’s. You’ll be grateful that you got this insurance.
Meet Your Loan Conditions
Once you’ve got your insurance all squared away you’ll want to do your homework to make sure that you’re meeting all of the conditions of the loan you took out from the lender. These conditions will get stated clearly in your loan documents.
You’ll need a clear title report, a home appraisal value, and proof of insurance in order to meet the conditions of the loan on your new home.
Get Ready to Move
Now you’re getting to the exciting stuff. One of the best parts of buying a new home is the part where you get ready to make the move and transition into your new place of living. Now is a good time to start organizing your belongings and packing the non-essentials to make the moving process a bit easier.
Check the Closing Disclosure
When you get closer to closing on your new home you’ll need to check the closing disclosure. This document is the same no matter where you live in the United States. It helps to itemize the closing costs for the home for you as well as for the seller. This document is one of the most important documents of the transaction.
It is so important, in fact, that there are federal laws that require it to get sent to the homebuyer no later than three days before the closing date.
Do a Final Walkthrough
You’re starting to get closer to the end of the real estate closing process when you take your final walkthrough of the home. This is your last chance to look everything over and check out the home that is about to be yours. The best approach is to do the walkthrough during the same day that you’re scheduled to close on the home.
Keep in mind that the walkthrough isn’t a mere formality in the process. It is important that you make sure that the seller has removed their belongings and that the home is in the condition that you expected it to be in when purchasing. Make sure nothing is wrong with the home during the walkthrough.
Get Your Documents Together
Next, you’ll want to start getting your documents together. Your closing agent will send you a list of all of the documents that you’ll need for this. You’ll need your proof of homeowners insurance and photo ID as well as a list of your different addresses over the past 10 years.
You’ll also need a cashier’s check that is marked as “cash to close” if you haven’t already paid the closing costs. Last, you’ll need to bring your checkbook just in case there are other fees that you need to take care of in order to purchase the home.
Get Your Keys
Once you have all of your documents together it is time to go to the home and get your new house keys! This is the date that you’ve been waiting for more than a month. This is the day where you make this house into your home with your family. This is your last chance to ask any questions to the agent.
From there, you’ll get started on the large pile of paperwork that finalizes the sale of the home and the property to you.
File the Homestead Declaration
There is one more step you’ll need to do. You’ll want to file the homestead declaration for your new home. Ask your real estate agent if this is done automatically in your state. This document registers your home as your primary residence with the local and federal government.
Now You Know the Real Estate Closing Process
The real estate closing process is the buildup of excitement before that dream house officially becomes your new home. There are many steps that you’ll need to take in order to complete the process and become a first time homebuyer. Knowing what to expect will make the process easier to navigate and make you a smart homeowner.
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