Are you getting ready to close on your new home? Preparing for the real estate settlement process is an exciting endeavor. But it is essential that you understand what is involved in getting your contract to close, especially to help facilitate the process for streamlined success. We work as a third-party facilitator to close home loans each and every day. To help you best prepare for this process, we have listed the top seven things you should know about the real estate closing procedure.
- Understand the closing timeframe. From contract to close, it takes about 30 to 45 days for the real estate settlement process to be complete. During this period, your loan goes through approval and funding activities, which takes up the bulk of this timeframe.
- Expedite information submission. Your lender will request very specific information and will use this documentation during the loan approval process. To keep your closing date within sight, be sure to submit any information requested as thoroughly and quickly as possible. Insufficient documentation submission can cause a lag in the timeframe between contract submission and the closing date.
- Factors that may stall the proceedings. In some cases, the closing process may be delayed due to unforeseen circumstances, such as title problems surrounding the proper transfer of ownership. Title defects that are identified must be resolved prior to closing on the home.
- Schedule the home appraisal and inspection. The home inspection and home appraisal should both be completed early on the closing process.Typically, you will schedule a home inspection of the property you are intending to purchase, while your lender will be responsible for arranging the home appraisal (which takes place following the home inspection).
- Carefully review your Closing Disclosure (CD) form. Your lender is required to submit to you a CD form at least three business days prior to your closing date. Be sure to review this document carefully, as it will contain information pertinent to your loan and the financial responsibilities associated with your purchase. Any discrepancies in the information entailed will need to be addressed and resolved prior to sitting at the closing table.
- Arrange for the final walk-through. Usually scheduled a day or two before closing, the final walk-through is your chance to make certain the property is in the agreed upon condition before you sign the papers to purchase the home.
- Know what to bring to the closing table. Depending on your specific state and loan requirements, you will need to provide two forms of identification (one should be government-issued) at closing. A cashier’s check in the exact amount of your down payment (minus any good faith deposit) or wire transfer instructions should also be brought to the closing table.
In addition to each of these factors, it is important to stay in close contact with your real estate agent so that you can remain apprised of the progress of your closing procedure. By keeping these things in mind, you can be better prepared and have a greater understanding of what to expect as you take this milestone step towards home ownership.
Do you have other questions about the closing process? Our team is happy to help! Contact Linear Title & Escrow today and speak with one of our knowledgeable team members.