Home Buying 101: The closing

1 year ago

The closing process on a new home typically involves several steps to finalize the sale and transfer of ownership from the seller to the buyer. Here are some of the key steps that may be involved:

Review and sign the purchase agreement: This is the legal contract that outlines the terms of the sale, including the purchase price, contingencies, and other important details.
Obtain a home inspection: Before closing on the home, it's important to have it inspected by a professional to identify any issues or problems that may need to be addressed before closing.
Obtain financing: Unless you're paying for the home in cash, you'll need to secure financing from a lender. This may involve getting pre-approved for a mortgage, providing documentation and information about your finances, and finalizing the loan terms.
Conduct a title search: This is a process to ensure that the title to the home is clear and free of any liens, claims, or other issues that could affect the transfer of ownership.
Obtain homeowner's insurance: You'll need to obtain a homeowner's insurance policy to protect your investment in the property and meet the lender's requirements.
Complete a final walkthrough: Before closing, you'll typically have the opportunity to walk through the home one final time to ensure that everything is in order and any agreed-upon repairs have been completed. This usually happens the day before your closing. This also gives a day to take care of any discrepancies found.
Attend the closing: This is the formal process of signing all of the paperwork to finalize the sale and transfer ownership of the property. You'll typically need to bring your ID and a cashier's check or wire transfer for the down payment and closing costs.