Purchasing a home is one of the most exhilarating events in a person’s life. Whether you’re buying your first place, your dream house, or the home where you plan to retire, sitting at the closing table is surely a highlight along the journey called life. If you’re about to close on a new property, you may be wondering what to expect. Read on to explore some of the most commonly asked questions surrounding the closing process when buying a home.
How long does it take to close on a home?
Closings are typically scheduled about 30 to 45 days after contract ratification. This timeframe may vary, however, depending on the type of mortgage product.
What should I bring to my closing?
On the day of closing, you’ll need to bring a government-issued ID (two forms of identification may be required, in some cases) and payment for closing costs (in the form of a certified or cashier’s check).
Who conducts a real estate closing?
Closings are conducted by a title closing agent or a real estate attorney.
How much will I pay in closing costs?
Closing costs are determined by a number of factors. For buyers, closing closes are generally between 2 – 7% of the sale price of the home.
What is included in closing costs?
Settlement costs for homebuyers vary from case to case, but often include:
• Mortgage origination fee and loan discount points
• Mortgage insurance
• Appraisal fee
• Homeowner’s insurance
• Pre-paid mortgage insurance
• Property taxes
• Transfer taxes
• Title search fee
• Recording fees
• Other closing fees
• Lender’s title insurance (generally required)
• Owner’s title insurance (not required, but highly recommended)
For more on the closing process for homebuyers, please contact Linear Title & Escrow today.