Buying a home is a milestone in life, whether it’s the first property you’ve ever purchased or one of several. Knowing what to expect when it’s time to close on your home loan and take ownership of your new abode can be very helpful as you navigate the home buying process. Read on to discover some of the most frequently asked questions about closing on a real estate transaction.
What does “closing on a home” mean?
For home buyers, “closing” on a home means signing documents to finalize the home loan (or mortgage) and the transfer of ownership (title) of the property. For sellers, “closing” means to transfer the legal and ownership rights of a property to the buyer.
Where will the closing take place?
Home closings often take place in the office of a title company or a real estate attorney. They may also be conducted in the mortgage lender’s office or another location designated for convenience.
Do buyers and sellers have to be present at a home closing?
It’s important to understand that essentially two closings take place during a real estate transaction: one is for the buyer and a separate closing for the seller. While it’s common for the home buyer to attend the closing, it is not required. All states allow for closings to be conducted via power of attorney for both buyers and sellers.
As a home buyer, can I choose the title company for my closing?
Yes. Buyers have the right to choose the title company that conducts their closing transaction.
What do I need to bring on closing day?
Your title agent will inform you of the exact items you will need in order to close. These generally include:
-A government-issued photo ID
-A cashier’s check in the exact dollar amount of monies due
-Documentation indicating proof of homeowner’s insurance
-Closing Disclosure (CD) form (This is a form sent by the lender to the buyer at least three business days prior to closing. It contains all the details of the loan and the buyer’s financial responsibility pertaining to the sale.)
How long does the closing process take?
From contract to settlement, the entire closing process takes (on average) about 45 days. While there isn’t really an average time attached to the actual closing itself, as this can vary according to individual buyers, home closings typically take a minimum of an hour.
Do you have other questions about the closing process? We can help! To learn more, contact the experienced team at Linear Title & Escrow today.