How to Close on a House
- Real Estate Tips
- July 5, 2023
What are the Steps to Close on a House?
The closing process of a home can represent the final step in getting the house of your dreams. Nevertheless, before you acquire property ownership, you must complete a number of documents and a few key steps. Buying your first home shouldn’t be stressful! If you educate yourself about the closing process and know what to expect, closing on your home can be much smoother than you think.
Take a look at the steps you can expect leading up to the closing date if you’re asking how to close on a house:
- The Home Seller Accepts and Signs the Purchase Agreement: Once you begin closing on a property, the purchase agreement must be completed by the seller and returned to your Real Estate Agent in Encinitas (or elsewhere, depending on your location). A purchase agreement usually consists of a buyer’s offer price plus any contingencies, financing terms, possession date, and other characteristics. Typically, you must deposit earnest money to an escrow account to demonstrate you are serious about the purchase. If the purchase is successful, the money will be applied to the downpayment of the house.
- Schedule a Home Inspection: After the seller signs and completes the purchase agreement, you can arrange an inspection to find any faults in the property. Depending on the results of your inspection, you can decide if you want to proceed with the sale or not.
- Complete Your Mortgage Application: If you continue with the closing process, you must go through the mortgage application by providing essential documents, such as your income and financial information. Once you submit the correct documents, you should receive a loan estimate with your terms, estimated closing costs, and other noteworthy details.
- Buy Homeowners Insurance: Be aware that most lenders require buyers to have homeowners insurance and bring the policy to the closing. Ask advisors for suggestions on an insurance company or search for a provider online. Compare each insurer’s cost and coverage amounts and decide which fits your situation. However, before you sign with a provider, you must ensure they have a reputable reputation and are reliable with their customers. You don’t want to end up with an insurer that doesn’t have your back in an emergency.
- Provide the Closing Documents: If you qualify for a mortgage, you will receive a notice of the closing date and time. The notice will also have a list of documents you must bring to the closing table and a disclosure that outlines your mortgage obligations, closing costs, and other factors. Ensure you review this document carefully and ask questions if something is unclear.
- Sign the Papers and Collect Your Keys: Once you examine the property one last time, you can finally sign your papers and collect the keys to your property! However, it’s essential to bring a lawyer to the closing table so you can examine the document for important details. If everything seems good, you can finalize the closing process and become the owner of your new home.
Do I Need a Realtor to Close on a House?
No, you don’t need to have a Realtor in Encinitas or elsewhere in order to close on a house. However, the closing process can be simpler and hassle-free if a Realtor works with you! They can cut through the legalities of the process and assist with any complications along the way. If you’re thinking of hiring a Realtor or have questions about how to close on a house, you can contact Linda Moore today for further assistance.
