Whether you’re buying a home for the first time or you’re a seller, the closing process can be quite overwhelming. People usually want to close the sales of a home as soon as they can, but there’s usually a lot of steps to take, expenses to take care of, and documents to put in place before the deal is made official. The closing process can be quite tiring, and the buyer or seller might feel removed from the process at some point; this calls for a more secure and consumer-friendly closing process that involves everyone and facilitates a smooth transition of ownership.
Obtaining Title Insurance
Closing agents will want to carry out a title search to ensure that you’re the legal owner of the property. If there are claims against the property, carrying out a title search on the home should uncover them, and they need to be resolved in time for the sale to proceed. While buyers might be carrying out home insurance, there is a need for sellers to obtain title insurance to protect their property against events that might affect their home like unpaid bills; this helps to smoothen the closing process for both parties. Title insurance usually comes in two types: a policy for the owner and the lender; both parties can agree to share the cost for the policies.
Home Inspection
Although this isn’t necessary, buyers might choose to request a home inspection so as to uncover any hidden problem that might be ailing the property. Normally, an inspection is slated to take place after the buyer’s offer is accepted. Sellers should make sure that repairs are taken care of in the house to avoid it affecting the value of the home. Sellers need to clean out the home before the inspection and make sure it is in stellar condition. The inspection usually covers the safety, quality, and functionality of the home. Buyers and sellers should work out an agreement about the repairs; buyers may prefer that sellers remedy problems found in the house before closing or demand a price reduction to take care of repair costs.
Carry Out Lender Appraisal
When a buyer is borrowing some money to purchase a home, the mortgage lender might choose to carry out a professional appraisal. This is to make the lender confident about the money being lent to the buyer and that the amount is in line with the value of the home. This also helps the lender appraise the home in case the house needs to be repossessed. Sellers should make sure the home is not overpriced and is in stellar condition before the lender appraisal is carried out. If the appraisal shows the house is below the sales price, buyers need to either challenge the appraisal or ask sellers to lower the sale price.
The Final Walk-Through
This usually takes place a day before the closing is completed; the buyer and their agent usually take a final walk through the property to make sure everything in the house is in perfect order. Buyers will check if repairs were taken out, and the building is damage-free. Sellers should make sure all possessions are moved out of the property before the final walk-through. If there are major appliances negotiated into the deal, sellers should make sure they’re working and in place before the final walk-through.
Finalizing Sales on the Closing Date
The closing date is when the closing process is completed; there’s a lot of paperwork to be signed, including deeds to the property. If there are documents not properly understood by both parties, there should be an attorney available to explain the documents. The closing usually takes place either in the office of the escrow agent or that of the attorney; attendance should be made mandatory for both parties. After signing, buyers should make arrangements for properties to be moved into the home as soon as possible.
Reference
https://www.opendoor.com/w/guides/house-closing-process-for-seller
