Real estate closing is the final essential step to complete a home purchase. The process comes with lots of paperwork and steps many buyers and sellers do not understand. This post will take a closer look to explain some of the details.
New River Valley Real Estate Market Watch
The median home sales price in the New River Valley in August 2023 was $329,900. Real estate data changes day by day. Contact the Louise Baker Team if you need help buying or selling homes in the New River Valley.
A real estate closing marks the end of weeks or months of negotiations, due diligence, and paperwork. It’s when the buyer takes ownership of the property. Closing is also when the seller receives the sale proceeds.
The following are some of the important points to know about:
In the purchase agreement, the parties predetermine the closing date and location. Generally, it occurs at a title company’s or attorney’s offices, providing a neutral and secure environment.
A real estate closing can have several stakeholders. The buyers and sellers are key players. You may also find real estate agents, attorneys, and lenders at a closing.
One of the first fine print items to tackle is the issue of closing costs. Both buyers and sellers have their share of expenses. Depending on the transaction, costs can range from the thousands to tens of thousands. These costs cover title searches, insurance, property appraisals, and lender fees.
A real estate closing involves a paper trail that can seem overwhelming. Some of the critical documents include:
1. HUD-1 Settlement Statement
This document breaks down all the expenses related to the transaction. It ensures transparency about where your money is going.
The deed is the legal document that formally transfers property ownership from the seller to the buyer.
3. Mortgage Documents
If you’re financing the purchase, you must sign various documents related to the mortgage loan.
4. Title Insurance
Mortgage lenders require title insurance as a condition of the loan. It protects their investment in the event any title issues arrive after closing.
A Final Check
Before sealing the deal, buyers typically can perform a final property walkthrough. It allows them to verify that the property is in the contract’s agreed-upon condition.
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