The Real Estate Closing Process
Finally, the Closing
If you are like most people, you went through a number of steps to reach the real estate closing process. You spent many weekends looking at homes with outdated kitchens, stained carpet, noisy plumbing and back yards filled with weeds. But you finally found your dream house. Then, you completed all the steps necessary to get approved for a mortgage. Finally, it’s time to close the deal.
The Last Few Steps
A closing is the final step in most real estate transactions. This is when you pay the seller, sign the deed and the mortgage documents and complete all of the steps necessary to make the house legally yours. That’s when you get the keys to your new home.
Most closings are attended by you, the seller, a representative of the bank, the closing agent or attorney and your and the seller’s real estate agents. While closing on a new home in Illinois can be complicated, they don’t need to be.
The thing you will remember most is the number of times you sign your name. Many documents require one or more signatures. At most real estate closings, the purchaser will have to do a number of things to take title to their new home, including:
-Sign all mortgage-related documents. Many will need to be signed in duplicate or even triplicate.
-Pay the seller for the purchase, using a combination of personal funds and mortgage proceeds.
-Sign all the documents provided by your attorney or the title company related to the new deed to the property.
-Negotiate and pay any final financial obligations, including prorated property taxes, utilities or special assessments.
-Pay any remaining bank closing costs, legal fees, title insurance or similar expenses.
-Collect the keys and get ready to move into your new home!
At some real estate closings you will be represented by an attorney, who will advise you on the legal implications of the documents you are asked to sign. Some states don’t require you to have an attorney. Then the closing is conducted by a closing agent, often a representative of the title company.
The Final Walk Through
Most closings are preceded by a final walk through of the property. This is your opportunity to make certain the condition of the property hasn’t changed since the last time you saw it, that all elements covered by the purchase contract remain in the house and that any required repairs have been made. Any concerns you find can be negotiated at the actual closing.
Most lenders require you to have title insurance to close on a property. Title insurance ensures that you have a valid deed and protects against financial loss resulting from defects in the title, such as liens and other problems. As part of the closing process, most mortgage lenders require you to choose a title company, acquire coverage and pay any insurance premiums.
It’s OK to Ask Questions
For most people, a real estate closing is the biggest financial transaction they will ever be involved in. That means it’s OK to ask questions about the process and the documents you are being asked to sign. Typically your attorney, closing agent or real estate broker should be able to answer those questions. When the closing is complete, you will own a new home. And for most people, that’s the beginning of a new chapter in their lives.
Are you interested in a new home in Illinois and are looking forward to reaching the real estate closing process? Contact United Home Loans for a free Illinois mortgage quote!