If you are buying your first home, you may not be clear about what happens during a real estate closing. During a closing, you’re going to finalize the paperwork for the transfer of the property. At the end of a closing meeting, you will officially own the property and walk away with the keys.
What should you expect during the closing process? Here is a little more about what will happen.
Verifying the title
Next, you will need to perform a title search. Some people opt to purchase title insurance, too. If a cloud is on the title or other problems arise, the property may not be able to be transferred.
Working with your closing attorney
When the title has been verified, you’ll go ahead and determine the closing costs, schedule an inspection and renegotiate your offer if needed. Your interest rate will be locked in if it wasn’t already, and you’ll go over any contingencies to release them.
Starting the closing process
To start the formal closing process, you will place the money for the property into escrow. There, the neutral third party will protect the documents and funds related to the transaction. Those will be released only when the terms of the agreement are met.
After this, you’ll have a final walkthrough and meet with all parties, including your attorney, to sign the final paperwork on the closing date. On that day, don’t forget that you will need:
- Your photo ID
- Proof of insurance
- The final purchase agreement
You may need additional items as well, which is something to discuss with your closing attorney before they meet with you and the other party that day. They’ll go over the physical closing documents with you at the closing, so you can then take the step to get your keys and move into your new home.
This process can be complex. Having support can help it go more smoothly, so you close on the property you want with no legal issues. Failing to follow all the right steps could negatively impact your purchase or result in the purchase falling through completely.