It goes without saying that wrapping up a home purchase can be stressful, but it’s even more stressful when you’re not sure about how you’re going to take care of things. So let’s see if we can help you go about navigating the closing process without losing your cool, okay? Okay!
First and foremost, you should never be going blind through a closing. This means that you get some information about the costs associated with closing on the home. This should be given to you before you even put the contract on a home. This is called a Good Faith Estimate. Is it always accurate? Not perfectly, but it costs better close.
In order to make sure that you have everything for your closing to go smoothly, you need to get a settlement agent. This is the agent that’s going to prepare all of the documents for your closing.
If the seller accepts your sales contract, then you’re in full swing. That’s where having that settlement agent on tap is a nice touch, because all of the pieces can come together very quickly. Having a real estate attorney be your settlement agent is a wise idea. Ye never want to imagine that things can go sour, but they definitely can.
A title search during the closing process is absolutely necessary. This ensures that you’re buying a home “free and clear” without any encumbrances. You wouldn’t want to realize that you have agreed to purchase a home that already has a previous mortgage on it, or that the owner didn’t pay the properly taxes as they were supposed to. Never try to skip the title search — it’s just too important!
Your sales contract will also determine the flow of your closing. For example, if you’ve already highlighted in the agreement that detection of termites or other pests requires intervention by the seller, you’re going to want to do a home inspection that’s very comprehensive. It might sound odd to add yet another cost to your list when you’re trying to buy a home but trust us — this one’s pretty important.
If the Good Faith Estimate comes “close” to all of the costs, then the HUD-1 Settlement Statement is going to hit the mark each and every time. It’s going to list all of the cost that both parties have to take care of, giving you exactly how much you need to pay.
We never said that the closing process would be cheap, but it is necessary to get into your own home. Why not get your own dreams of owning a home off the ground today?
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