Buying a Home: What Happens at Closing?

Buying a Home: What Happens at Closing?

Contra Costa County Real Estate | East Bay Homes

Buying a Home: What Happens at Closing?

Posted by marketing
21 April 2018 | Blog

Even if you’ve done it before, you probably don’t remember what to expect.

What Happens at the Closing of a Home Sale Transaction?

When you are buying a home, many of us feel anxiety or tell ourselves to not get too excited till the property closes.  So what does it mean for a home sale to “Close” or go through “Closing”. In simple terms, this means that the house’s ownership has officially gone from the seller to the buyer. In other words, the home is now yours.  This is usually signified by the recording of the grant deed showing the change in ownership along with the funding of the loan a day before this event. 

Before getting to this point, what truly happens? The three biggest things beyond completing a lot of paperwork are the following:

  • Buyer inspects the property
  • Seller repairs any needed areas
  • Buyer gets loan approval and funded

In home sales, there are several types of fees that need to be paid within a “closing”.

Statutory Costs

These are expenses you have to pay to state and local agencies, even if you paid cash for the house and didn’t need a mortgage. These include transfer taxes, deed recording fees, prorated property taxes, and state or local fees.

Third Party Costs

Beyond the required fees, other entities may want their cut of the money. These arise even with all cash transaction. They may include escrow fees, title search costs, homeowner’s insurance, and realtor commissions.

Finance and Lender Charges

The lender usually also has their own set of fees which they incur and pass along to the borrower, or buyer of the home. They are the following: underwriting fee, credit report, points, escrow fees, document preparation fees, appraisals, mortgage insurance, title insurance, inspections required by the lender, release fees, prepaid interest, and escrow account

While this article touches on the main aspects of closing a home purchase transaction, many other nuances exist. Our team is experienced and ready to educate you on the process while helping you with your home sale or purchase of your dream home.  Contact Laura Wucher Real Estate today!

Related Articles

Posted by marketing | 13 August 2018
When you’re looking to buy or sell, it’s a good idea to familiarize yourself with the nature of the market and pricing. The prices of real estate properties are influenced...
micro factors in real estate value, home selling price, real estate market factors
Posted by marketing | 07 August 2018
Real estate market prices are influenced by a set of forces. You can look at the factors that influence real estate values as two sets: the Micro Factors and the...
Posted by marketing | 28 July 2018
The Bay Area and the East Bay specifically have a wealth of unique activities that you can enjoy all summer! Everyone knows the Bay Area summer offerings include great bars,...