You need to close on the sale after agreeing to buy a home.The process is not easy.If you want to apply for a mortgage, you will need to order a home inspection.You have to walk through the property one last time to see if repairs have been made.Before you get the keys, you have to pay your closing costs and read dozens of documents.
Step 1: Receive the purchase agreement.
When the seller signs and returns your purchase agreement, you go into closing.If you uncover problems during the home inspection, you can change the agreement.The assumption is that the purchase agreement is final.The exact time you'll close depends on the length of the contract, but it will be around 45 days after you receive the signed agreement.If you have a lawyer, give them the purchase agreement.Send it to your lender so they can begin the process.
Step 2: If necessary, make an escrow deposit.
In some states, you have to deposit a certain amount.If you violate the purchase agreement, the money will go to the seller.If you need to make this payment, ask your real estate agent.
Step 3: You should order a home inspection.
Structural problems, building code violations, and appliances that don't work should be checked out by a professional inspector.If there is a major problem, an inspection will protect you.Rarely, a lender will require an inspection before giving you a loan.You should get a referral from your real estate agent.You can find an inspector online.A home inspection can cost hundreds of dollars.After you receive the signed purchase agreement, book an inspection as soon as possible.
Step 4: If there are issues, negotiate with the seller.
Structural damage or other serious issues might have been found during the inspection.The buyer has options at this point.You should read your purchase and sale agreement.If an inspection shows a serious problem, you should be able to back out of the sale.Discuss your case with your lawyer.The seller should fix the problem.Repairs could delay your closing if you are pressed for time.It is not certain if the owner will fix the problem properly.A credit can be negotiated.You can make the repairs yourself if the seller gives you money.This could be the easiest option.
Step 5: You have to complete your mortgage application.
It is possible that you were pre-approved for a loan.You have to complete the mortgage application.Tax returns and bank statements are some of the supporting documents you will need to provide for the application.It is best to apply in advance so the lender can complete the application once you are under contract.It can take a month for the lender to approve a loan.
Step 6: You should read your loan estimate.
A plain language document should be created for you by your lender.It can delay the progress of your loan if you don't sign this in a timely manner.The details of your loan are summarized in this document.prepayment penalty, interest rate, and total cash amount to close
Step 7: The appraisal should be analyzed.
The buyer will have to pay for the house's appraisal.The purpose of the appraisal is to make sure the house is worth as much as you paid for it.If the appraisal is low, the lender might reduce the amount you can borrow.You might have to change the purchase price with the seller.
Step 8: Required insurance needs to be obtained.
Proof of homeowners insurance is required by your lender before closing.You can find the lowest rate by shopping around.You will usually have to pay your first year's premium with the closing costs.Unless you are told to by your lender, don't pay for your insurance in advance.You should purchase a title insurance policy as well.If there are problems with the title, this insurance will protect you.Depending on how the contract has been written, you will usually be required to use the title company to process the file.
Step 9: You have to decide how you want to take the property.
When you die, who will inherit the property will be determined by the forms you own it in.If you need a lawyer, spend some time considering the options.If you are single and buying a home, you can own it in your own name..There are more options when a couple buys a home together.One can own the house as tenants with the right of survivorship.At death, the surviving partner becomes the full owner of the property.There is a possibility that this is not the case.If you want to own equal shares of the property, you should take it as tenants-in-common.The other partner doesn't become the full owner at death.The deceased's share will be passed on by will.
Step 10: Three days before, you'll get a closing disclosure.
This is similar to the Loan Estimate that was received at the beginning of the process and allows you to see your final interest rate, term, loan amount, cash to close, payment, and fees.To be sure you still want to close on the loan, use this to compare what has changed through the lending process.If you are getting a loan, you must sign this at least 3 days before closing if you want to avoid a delay.At closing, you will review this again.
Step 11: You need to gather your documents.
Several documents should have been received during the home-buying process.You can review them ahead of your closing if you find them all.Obtain the following: purchase and sale agreement loan estimate, title search, homeowners insurance, and closing disclosure.
Step 12: Put the funds in a wire.
It's a good idea to talk to your bank about this at least a day before closing.You may be able to use a certified or cashier's check, but a wire is required.You should be told what is acceptable by the closing agent.
Step 13: Go through the property.
24 hours before your closing, you have the right to walk through the property.This is a great opportunity to take advantage of.The property is as expected and the seller has removed their belongings from the premises.Check that the repairs you requested were made.If they were, contact your real estate agent to discuss your options.
Step 14: Ask your lawyer to attend.
It's possible to close a house on your own.If something confuses you, you might need a lawyer's advice.Inform your lawyer when the closing is going to take place.
Step 15: Allow enough time.
The closing can take up to two hours.You can finish in one hour if things move quickly, but don't count on it.Budget for two hours so you don't feel rushed.
Step 16: There are necessary documents to bring.
You need to take certain documents with you when you close the deal.Bring a photo ID.Your driver's license or passport is needed by the closing agent to verify your identity.The second form of ID that you bring will not need a photo.Check to make sure.There is a purchase and sale contract.If you need to refer to it, you should have a copy with you.
Step 17: The people are present.
The seller and buyer will be joined by several other people at the closing.It is possible that there are quite a few people in the room.The closing agent is the person who runs the closing.Attorneys.The seller and buyer can have an attorney.The closing agent could be an attorney.A person from the title company.There are real estate agents.The lender for the buyer.
Step 18: Don't be rushed.
Many closing documents are hard to understand.Don't let the closing agent rush you through the process if you take your time reading them.Ask the closing agent, lender, or your lawyer if you have any questions.
Step 19: Take a look at the monthly payment letter.
Your monthly mortgage payment will be explained in this document.How much goes to interest, principal, taxes and insurance should be identified.Ask the lender's representative who should be at the closing if you have questions.
Step 20: You should read your closing disclosure.
The details of your loan should be explained in this document.Make sure the terms match what your lender told you in the loan estimate.The amount financed interest rate annual percentage rate total cost over the life of the loan should be included in the statement.
Step 21: The promissory note needs to be signed.
The note is an agreement between you and your lender.The interest rate and prepayment penalties should be in it.To confirm that the terms match those in the closing disclosure, double check this note.Make it legal by signing this note.
Step 22: Put your signature on the mortgage or deed of trust.
You pledge the home as security for your loan by signing this document.Your lender can take the home if you default.Before signing the document, read it carefully.
Step 23: Your closing disclosure should be read closely.
The document should be received at least three business days before the closing.It will show you all of your financial obligations, including your closing costs, insurance obligations and mortgage breakdown.You should compare this document to your loan estimate.The terms should be the same.Stop the closing and talk to your attorney if the loan details have changed.New terms on you at the closing could be against the law.
Step 24: The proration papers need to be signed.
The documents explain how the seller and buyer split the property taxes.It is possible to split the cost of utilities.Make sure the papers conform to your agreement before you sign them.
Step 25: Signing other documents is recommended.
Signing up to 30 documents might be required at the closing.Read them carefully.Ask your lawyer or the closing agent if you have questions.The Flood hazard statement is one of the documents you must review.This document will tell you if your home is in a flood zone.There is a declaration of reports.The buyer must acknowledge that they have looked at the reports.The title is described in the abstract.All documents that affect the property are recorded in this document.
Step 26: Receive your keys.
After you pay your closing costs and sign all your documents, you should get the keys to your new home.You are a homeowner!