While buying a new home is an exciting venture, it is also one with a lot of confusion. Between making the wish list, looking at houses, going through an inspection, making the offer, and then closing, keeping track can become a little overwhelming. One aspect of buying a house that seems to cause the most confusion is the closing. Therefore, we wanted to address a home closing so you understand what it is and what to expect.
For starters, a home closing will occur, whether you are buying your first home or your tenth home. Just remember that you do not have to go through the closing on your own. Instead, your real estate agent and/or lender will be there to walk you through the process and explain things in detail if needed. At the beginning, you would go through the settlement process on the day of the home closing. However, this part of buying the house has already been happening behind the scenes.
The order for the home closing will be received by your lender. He or she will contact you to make sure all of the required paperwork is in order. Then, the escrow or contract agreement is received at which time a settlement agent will review it to check for accuracy and completeness. If you had paid an earnest check when the initial offer was made, this would also be received with the settlement agent having the responsibility of making sure the money is deposited into the escrow account. Once the money is there, it will remain in that account until the day of closing.
Next, the settlement agent will request preliminary title work as soon as the receipt of the closing order is received. With that, the title company will conduct a search, then look at, and prepare the title commitment or some type of evidence for title. The title insurance would then be forwarded to the settlement agent who checks again for accuracy and completeness. If there were any questions or problems, the settlement agent would make the appropriate request.
At this time, the settlement agent compares the title commitment to the contract, loan-closing instructions, and other documentation, ensuring everything matches up. During the time that the title evidence is being prepared, the agent coordinates other factors associated with the closing. There would be various people involved with the closing, some working with the home’s inspection, some doing the termite check, some surveying, and so on.
As long as there are no problems or discrepancies, the settlement agent facilitates things with the other professionals. Finally, you will receive notification of the closing date. This date cannot usually be changed so you will need to plan time off from work to be there so the official sale can take place. Then because the lender likely has more closings scheduled, you want to show up on time. You, the sellers, your agent, the seller’s agent, and the lender would be present at which time all legal documents are signed and notarized. When finished, you are handed house keys as a new homeowner.