Even if you’ve done it before, you probably don’t remember what to expect.
What Happens when Closing on a Home?
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”.
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!