Closing the Sale: What to Expect
Closing is when funds and documents are transferred in order to transfer ownership of the property to the buyer. The escrow officer will look over the contract and find out what payments are owed by who, prepare documents for closing, perform the closing, make sure all payoffs are completed, the buyer’s title is recorded, and that you receive payoffs that are due to you.
CLOSING DAY
Closing is when you sign ownership and insurance paperwork and you receive the keys to your new home! Typically, closing takes 25-30 days. During this time, purchase funds are held in escrow, where your money is held safe until the transaction is complete.
CLOSING DISCLOSURE
Lenders are required to provide you with a closing disclosure, at least 3 days before closing. This will show you what your final loan terms and closing costs will be. You will have three days to review the statement. This is done to ensure that there are no surprises at the closing table. If there is a significant discrepancy between the loan estimate and the closing disclosure, we must notify your lender and title company immediately.
FINAL WALK THROUGH
We will do a final walk through the home within 24 hours of closing to check the property’s condition. This final inspection takes about an hour. We will make sure any repair work that the seller agreed to make has been done.
We will be sure to:
• Test all appliances and make sure they are working properly
• Run the water in all the faucets and check for any possible leaks
• Open and close garage doors with opener
• Flush toilets
• Run the garbage disposal and exhaust fans
CLOSING TABLE
Who will be there:
• Your agent
• The seller (sometimes they sign early and dont need to attend)
• The seller’s agent (they may have signed early with the seller)
• Any real estate attorneys involved in the transaction
The closing typically happens at the title company. You will be signing lots of paper work so get your writing hand warmed up! Some of the papers you will be signing include: the deed of trust, promissory note, and other documents
CLOSING COSTS
Closing costs can vary depending on your home’s purchase price and where you are located. You can generally expect your closing costs to be around 3-5% of the home’s sales price.
BRING TO CLOSING
• Government-issued photo ID (please dont forget this one!)
• Copy of the sales contract (should already be at the title company)
• Homeowner’s insurance certificate (also should already be at the title company)
• Proof of funds to cover the remainder of the down payment and your closing costs
RECEIVE YOUR KEYS
Congratulations! It was a lot of hard work but you are now officially home owners!! Time to throw a party and get to know your new neighbors!