A real estate closing is the process of transferring ownership of a property from the seller to the buyer. It is an important step in the home buying process, and it's essential that you understand what to expect during the closing process. In this blog post, we will explore what a real estate closing entails and how a title agent can help make the process smoother for you. Thanks for reading!
Step One:
Once your realtor has your contract bound and your escrow deposit is collected from you, your contract is provided to the lender you are working with. The escrow deposit is a deposit of money that is made by the buyer, and the buyers realtor holds the funds until closing. The purpose of the escrow deposit is to show good faith on the part of the buyer and is applied to the purchase price at the time of closing.
Step Two:
The second step is the "loan application." The loan application is a document that is completed by the buyer and submitted to the lender. The loan application includes information about the buyer's employment, income, debts, and assets. The lender will use this information to determine whether or not the buyer qualifies for a loan.
Step Three:
The third step is the "loan approval." Once the lender has reviewed the loan application and determined that the buyer qualifies for a loan, the lender will provide a loan approval. The loan approval is a document that states the amount of money that the buyer is approved to borrow.
Step Four:
The fourth step is the lender reaching out to the title agent to open escrow and conduct the "title search." The title search is a process that is conducted by the title company of a 30 year review in public records was not to ensure that there are no liens or other claims on the property. The title company will also verify that the seller is the rightful owner of the property and any liens found against seller are collected from seller at time of the closing.
Step Five:
The fifth step is the "closing disclosure." The closing disclosure is a document that provides information about the final terms of the loan and the closing costs which is provided by the lender to the buyer. The closing disclosure must be provided to the buyer at least three days before the closing.
Step Six:
The final step is the "closing." The closing is when the ownership of the property is officially transferred from the seller to the buyer. At the Closing, both parties will sign a number of documents, including the deed, the mortgage, and the Closing Disclosure. The Closing is typically handled by a Closing Agent, who will ensure that all of the necessary documents are signed and that the funds are transferred. Congratulations- you are now a homeowner! Thanks for reading.
We hope this article was helpful in explaining what a real estate closing is and what the Closing process looks like. If you have any questions, please feel free to reach out to us. We would be happy to help answer any FAQ’s! Thanks for reading.
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