Buying a home is one of the largest investments individuals make in their lifetime, and there are a few more steps that go into it other than applying for a mortgage and attending open houses.
Home buying is an exciting process, and when you find the perfect home within your budget and lifestyle, you are only a few extremely important steps away from being a homeowner.
The closing process is one of the most important and complex parts the home buying process because that is when the seller’s home officially becomes yours. However, there are a few highly intricate and complex components for a successful, smooth, and efficient transaction.
What a Real Estate Closing Checklist Includes
Most people would imagine the closing process as one step in the home buying process, but it actually has several key components that a real estate closing attorney is best suited to help you with. The following is what a typical real estate closing checklist looks like.
#1: Check Off Any Contingencies
As the negotiations ensue, there are bound to be at least a few contingencies that arise. One of the initial steps on a real estate closing checklist is to ensure these items are completed prior to making the closing official, including:
- Home inspections
- Appraisals
- Financing/mortgage approval
#2: Clearing the Title
The title of a home establishes legal ownership of it, which is typically filed and confirmed by local public land records. You will typically be required, often by your lender, to perform a title search and purchase title insurance to protect you from any legal claims to your new home. By clearing the title, you are able to publicly establish that the home is yours and seek protection that any prior owners or relatives of the previous owners cannot claim they own your home.
#3: Final Mortgage Approval
You have made the down payment but just before closing your loan will go through an underwriting process which combs through your finances, from your credit score to your home appraisal, ensuring that your financial state is stable and has remained consistent since the time you were pre-approved.
#4: Review of The Closing Disclosure & Documents
Your closing disclosure or closing statement outlines your mortgage payments, loan terms, and closing costs. It is important to review this prior to going to the closing table, in addition to preparing and gathering other documentation, including:
- Proof of homeowner’s insurance
- Copy of your contract
- Home inspection reports
- Bank or payment paperwork needed to approve your loan
- Government-issued photo ID
#5: The Closing Table
At the closing table, there will be plenty of legally binding paperwork to sign, and a real estate closing attorney is best equipped to help guide you through the process. The process at closing can be complex with many moving parts – from signing of papers, to exchanges of monies – and it may be better to seek the counseling and guidance from a real estate closing lawyer.
Closing documents can be difficult to fully understand and play such a large role in properly purchasing a home without any legal complications. If you or someone you know is going through the home buying process, contact our team at Apfelbaum Law today to ensure a smooth closing process and transaction.
