Buying a house is a long process. If you find yourself at the closing stage, the process is almost done. It’s best to know what things to expect during the closing stage so that you won’t overlook anything essential or be surprised by fees that need to be paid during the process. Here’s a basic guide to help you get through the closing process:
1. Open an escrow account. – An escrow account is a neutral third party that holds important documents as well as money from the seller and the buyer. Putting your earnest money and the titles in escrow prevent both parties from being scammed at a very crucial point in the process.
2. Check the title and get title insurance. – It would be a nightmare to spend a lot of money on a house only to find out that there are other people who may have a claim to ownership. Doing a title search will make sure that there aren’t any other people or third parties that may someday have a legal claim on the property.
3. Negotiate with the lender regarding the closing costs. – Try to bargain down the other costs that the lender has control over. Check out which costs you can also cut down on by getting your own third-party provider.
4. Get the house inspected. – It’s not something required in many cases but it’s something you should seriously consider doing. For example, if you looked through Waxhaw homes for sale and found the perfect Waxhaw real estate to buy, you may feel so excited about your purchase that you simply don’t think about getting the house inspected. Some houses are also very cosmetically attractive that it doesn’t seem like it needs to be inspected, but it’s still a good idea to look beyond the obvious. It’s also best to hire specialists to inspect for mold, pests, toxic substances and other similar issues.
5. Lock your interest rate. – Interest rates typically fluctuate. A good lender will inform you when interest rates are particularly good for you so that you can lock it.
6. Put more funds to escrow. – The earnest money mentioned earlier serves as a proof to the seller that you are sincere about going through the buying process and that you’re not just stringing them along. Once you’re ready to buy, you put more money into the escrow funds to go through with the process. The earnest money you initially put on escrow will be added to your downpayment.
7. Do a final walkthrough of the property. – Walk through the property one more time, making a careful inspection of the things that are important, in case you missed anything.
8. Sign the papers. – There will be a lot of papers to read through and sign. You may be tempted to skip to the last part and just put your signature on the dotted line but it’s always best to read everything before you put your signature on it.
That’s the basic run-down of the closing part of the process. There may be some steps in between, depending on the situation. Make sure that you’re prepared for them; ask your real estate agent as well for any other things you may have overlooked during the closing process to avoid any interruptions and delays.