As you begin shopping for a new home or property, you figuratively open the doors to a new phase of your life. And when a seller finally accepts your offer, the undertaking will end with the aptly named closing process. During the real estate closing process, several important events will occur, including the signing of the deed, the payment and closing costs, and the transfer of the title and keys. To ensure that you understand the many documents involved and feel confident moving forward with the sale, you should consult with an attorney.
Real Estate Closing Process
After your offer is accepted, the inspections conclude, you’ve secured an attorney, your interest rate is locked in, and any contingencies are removed, the real estate closing process will begin. Your realtor, lender, and attorney will help you through each step, ensuring that you understand the procedures and their implications. Although the closing process will vary from transaction to transaction, here are some of the steps you can expect:
Walk-Through Inspection: Although the home should have already been inspected by a pro, now that closing is on the horizon, you will need to conduct a quick inspection to ensure that the property condition reflects any stipulations made in the sales contract. Some contracts will require this walk-through inspection and specify that it must occur 24 hours before closing.
Gathering Paperwork: Throughout this process, you will have received a barrage of important paperwork. Now is the time to gather up all of these papers, including the good-faith estimate, contract, title search, insurance estimates, inspection reports, etc.
Signing Paperwork: Purchasing property requires legal documents that you will need to carefully read and sign. Your attorney will help you review each document to ensure that you understand the legal ramifications. The documents will include an HUD-1 settlement statement, a promissory note, a deed of trust, and a warranty deed.
Pay the Down Payment, Closing Costs, and Escrow Items: You will need to pay the down payment, closing costs and escrow items at closing.
Receive Your Keys, Documents, and Title: When the closing process is complete, you will receive the keys to your new home as well as a stack of important documents. Keep these documents filed safely away, as you may need them when you complete future tax returns or eventually sell the property. Finally, the title of the home will be transferred to you, making you the official owner of the property. Congratulations!
As you prepare to engage in a real estate transaction, consult with an attorney who can help you prepare your real estate contract, spot potential problems in the paperwork, determine the appropriate due diligence, and assist with the closing of your transaction. If you live in or near Springfield, Missouri, contact the attorneys at Carnahan, Evans, Cantwell & Brown. Our experienced team of transactional attorneys can help you with all legal aspects of real estate acquisition, whether commercial or residential. For more information, please give us a call at 417-447-4400. We look forward to hearing from you!