After the Offer: The Closing Process Explained
When an offer on a house has been accepted, there are a few steps that must be taken in order for the sale to be finalized. This is called the closing process. Depending on the property and the personalities of both the buyer and the seller, this process can be swift or quite drawn out. Regardless, every closing process shares a few common aspects.
Accountability
A third party, often a title company, will open an escrow account to hold the buyer’s funds and transfer them to the seller as soon as the sale is complete. This protects both seller and buyer from losses. The total sum held reverts to the buyer if either party should drop out of the deal. This escrow account will also receive the remainder of the down payment and closing costs once you reach the final stage in the process. While this impartial third party will likely charge a fee for their services, an unreasonably high price may be a sign of a less-than-reputable company.
Safe Search and Title Insurance
A title search, once finished, will tell you if the title to the property in question is weighed down by any liens, taxes and other marks against it. In the event that there are problems with the title, these will need to be alleviated before the transaction is completed. Title insurance, meanwhile, protects you, the buyer, from any issues that were hidden at the time of purchase. We can assist you with the whole process. Visit Marina Title’s Residential page for more information.
Conducting a Home Inspection
While it is an added expense, a home inspection can reveal hidden problems with the house itself. Leaky roofs, moldy insulation and a variety of other issues can be revealed by a professional inspection. A pest inspection during this time can be beneficial as well.
If either inspection turns up any problem at all, no matter how small, your mortgage lender will require it be resolved before closing. Complications turned up during this stage of the process could call for your renegotiation of an offer. This could mean reducing the purchase price to cover any damage, or requiring the seller to fix the problems before the deal is finalized.
Purchasing a property “as is” puts the responsibility of any damages or issues on the buyer. However, you may still be able to ask for a home inspection to make sure the property you are considering would not be a total financial loss.
Getting the Best Deal
Interest rates tend to fluctuate with the market. They are also affected by your personal credit score. As such, it is important to lock in your interest rate as soon as possible to make sure you get the best deal. While experts may say interest rates could go down soon, the truth is no one can accurately predict just what the housing market will do. Waiting could leave you with a much higher interest rate than you anticipated.
In addition, any contingencies you or your Realtor set out should be addressed before closing. These may include a home inspection, or that the central heating and air system be serviced. Such conditions must be written out by a specified date.
The Last Steps
The day of or before closing, have a final walk-through and ensure everything in the home meets your standards. If everything is set, all that is left is to sign the paperwork and for the escrow funds to be transferred to the seller.
If you are in need of escrow service, title insurance or other services related to buying or selling a home, call us today at (305) 901-5628 or send us an email at [email protected].
