Technically, the ‘closing’ of a deal occurs when you sign the papers that make the property yours. But before that can happen, there are some things that you need to know. A little working knowledge on how the real estate transactions work can go a long way.
1. Walk Through The Property
Better safe than sorry! Inspect the house once more to ensure that it is in a proper condition as agreed upon by all parties. During the walk through, make sure that all the conditions required by the agreement like appliances and furnishings, have been met.
2. Secure The Required Insurance Policies
In order to obtain a mortgage, most lenders require the buyer to purchase a homeowners’ insurance policy. A homeowner’s insurance policy protects both the buyer and the lender, in case something happens to the house in the future.
3. Open An Escrow Account
An escrow account is an account that is held by a third party on behalf of the two parties in a transaction. This makes things easier and more comfortable, as there are many activities required to complete a home sale. Moreover, an escrow account is the best way to prevent either the seller or the buyer from any kind of fraud, as the money and related documents are with a neutral third party.
4. Lock Your Interest Rates
Since interest rates are unpredictable and fluctuate multiple times a day, you need to monitor the interest rates and lock them if you haven’t done that already. Keep an eye on the market, and lock your interest when the rates are at the lowest, and most affordable.
5. Get Pest Inspection Done
A pest inspection involves a specialist who ensures that your home does not have any wood-destroying insects like termites or carpenter ants. Even a small termite problem can spread and destroy the entire house. So, treat any minor pest problem immediately, if it exists.
6. Obtain Title Insurance
A title insurance policy is a policy that protects the buyer and the lender when there are problems with the land after the sale closes. While obtaining a title insurance policy, learn which policy offers the best protection for the least amount of money.
7. Consult An Attorney
It is difficult to create legal documents and confirm the laws relating to the real estate market. Hiring an experienced attorney will make things easier, and will aid you with the closing documents.
8. Renegotiate Your Offer
If your inspection reveals any defects or flaws in the property, you may want to reconsider the offer to reflect the cost of any repairs you may need to make.
9. Finalize Your Finances
Prior to closing the deal, sort out all your finances and make sure that you have the money you need to pay the closing costs and your down payments.
10. Schedule And Attend The Closing
Sign the towering paperwork, and see to it that both parties are present for the closing. Also, make sure that the interest rate on the papers is correct and there is no prepayment penalty. If you have hired an attorney, then he/she should be present at the venue with you, to ensure that all the paperwork is completed successfully.
Closing a real estate deal can be tedious business, but once the deal is closed, you can heave a sigh of relief. If you ever are unsure about what you are doing, then consult a real estate expert or an attorney to help you out.