The seller accepted the offer for your new home and your lender’s working to get you approved for your mortgage. The closing date is coming up fast and it’s almost time for the title to be transferred to your name. There are a lot of moving parts which can seem daunting and that’s where your closing agent comes in to help.
The guide below walks you through the process of closing on your new home so that you will not only be able to keep track of the process, but you can also help prevent delays and ensure a clean and quick transaction.
The steps in the closing process include:
- Applying for a mortgage, if you’re taking out a loan to buy.
- Receiving a Loan Estimate that shows how much your closing costs are projected to be and other information from your bank about buying a home.
- Selecting a closing agent and title insurance company.
- Scheduling a closing date.
- Scheduling the required inspections, surveys and appraisals before the closing date.
- A title search is done by your title company and issuance of the insurance binder.
- Next you’ll secure a hazard or homeowner’s insurance policy.
- Now the mortgage needs an approval from your lender.
- The preparation of the Closing Disclosure is completed by the closing agent who sends it to you for review.
- Now you’ll need to carefully looking over the disclosure and request changes, if any.
- Next you’ll need to wire the money to the escrow account for your closing.
- Now you’ll meet at the closing appointment with your agents to sign the documents.
- Last, after closing your closing agent will ensure all prior mortgages and liens are released of recorded.
What Can Cause A Break In The Closing Process?
The steps above might be delayed by a lot of things that are outside of the buyer’s control like title claims, an appraisal that comes in too low, financing that falls through or a problem with the walk-through. That’s why it’s essential that you keep in contact with your real estate agent, lender and title company for a quick and easy closing. This helps prevent delays and keeps the closing process flowing smoothly.
The best way to ensure a seamless closing process without delays is to have a closing agent that is responsible. That’s why it’s important to interview them first, ask them questions about everything from saving on services to modern paperless systems so nobody can “forget” paperwork and make sure they are organized. That is how you can help to keep the process flowing without worry or concern.