Buying a property is at times an arduous and stressful process, but it’s also one that comes with a great deal of excitement and, afterwards, a real sense of satisfaction. All those little victories along the way, such as finding a home that, after a real thorough cost-analysis, does indeed fit within your budget; or when you find yourself bidding against other buyers and forever wondering what their strategy is compared to yours. Then of course comes the moment when you secure the property. But you are not done yet.
Following all this is the whole closing process, sometimes also known as completion and settlement. This is a point where you should ask yourself some challenging questions, run some numbers again, consult with your realtor, and make sure that every “t” is crossed and every “i” dotted.
What is Real Estate Closing?
But before getting onto some tips for making sure this final stage in the process is a success, it is wise to be familiar, in more detail, with what the closing stage actually entails. There is much which is the responsibility of the realtor during the closing stage. And there are a set of steps for them to carry out – or to directyou to carry out. These are:
- the opening of an escrow account
- carrying out a title search (with title insurance)
- ordering a home inspection
- renegotiate offer’s terms if necessary (hence the inspection)
- schedule a closing date
- sign the closing documents.
These stages can take anything from a few days to a few weeks, which shows how much care and attention is given to the closing process. Make no mistake, it is very much part of the whole transaction.
A Word About Second Homes
Before getting on to some top tips for the closing process, it is worth noting the slight differences which might arise when purchasing a second home or vacation home. Hot Springs Village, a resort of second homes for sale in Arkansas, say that when the process is conducted through a verified organization like a rentals resort, things can move along much quicker and the process is standardized.
However, if you are buying a rental home from a private individual, certain tax implications and the business of taking out a second mortgage might stretch the process out somewhat – even at the closing stage. To put it simply, this is mostly because of the extra paperwork.
Tips for Closing
Here follows a few things to keep in mind at the closing stage:
Distribute the Property Info to Everybody Who Needs It
The mortgage details, the utilities, the maintenance, the property taxes, and the homeowner’s insurance details all count as vital information that needs tobe in the right hands well in advance of closing day. Your escrow officer, in particular, needs to be in possession of this before any transfer is made.
Check the Previous Owner Has Met Commitments
Very often, a final deal on a property will be reached before the seller is finished with the house. If there were repairs to be done, ensure that they are and that you can be satisfied of this after a home inspection.
Ensure your Homeowner’s Insurance Takes Effect in Time
You should also be absolutely sure that your homeowner’s insurance has been created with the latest property info (post repairs, etc.) and make sure that it takes effect before the closing date.
The closing stage of the property buying process might well seem like one long formality but, while the deal may already be done, it’s a long and important formality.