The Closing Process - What to Expect

by Luis Lima 03/12/2020

Image by mohamed Hassan from Pixabay

The last step of any home sale is the closing. This is the time when the buyer and seller sign all the documents surrounding the sale, including the documents for the buyer’s mortgage. This is when money changes hands and, in most cases, the buyer gets the keys to the home. If you’ve never attended a closing before, or it’s been a while, here’s what you can expect.

Before the Closing

Before the closing takes place, the buyer and seller will meet at the property for a final walkthrough. This gives the buyer the chance to inspect the home to make sure nothing changed in its condition between the inspection and the closing date. Buyers will look for damage to the property or items that aren’t working properly.

Who Attends the Closing

The closing is the next step. Both the buyer and seller with their respective real estate agents will be there. If anyone used a real estate attorney, that attorney will attend. A closing agent will conduct the meeting, and the lender may send a representative. Finally, someone from the title company will be in attendance.

Presenting & Signing the Documents

The main task that takes place at closing is the signing of documents. The buyers will go through about 50 to 100 pages of documents, many of which require a signature. Many of the documents are related to the buyer’s mortgage. The buyer will need to show proof of insurance, pay the closing costs, which are typically 2 to 5 percent of the home’s value, and fund the escrow, unless the seller offered to cover closing costs. Some of the documents relating to the mortgage that the buyer will need to sign include:

  • Final loan application

  • Mortgage agreement

  • Mortgage note

  • Loan estimate and closing disclosure

  • In addition to the mortgage documents, both the seller and buyer will need to sign several things, including:

  • The property’s deed

  • Bill of sale

  • Transfer tax declarations

  • At this point, any necessary payments are made, and the closing agent will write checks for the real estate agents' commissions. As long as there are no delays for funding, the keys change hands and the buyer becomes the home’s new owner.

    Potential Problems at Closing

    Most closings happen without any issues, but there are some problems that can arise on that day. It’s on the closing day that the final approval of the mortgage takes place. If the lender finds something surprising, like a change in employment or credit history, they could deny the loan. Also, title problems can pop up at closing that went undetected during negotiations. Finally, problems found during the final walkthrough could lead to delays at closing.

    Being well prepared for closing can help both buyers and sellers avoid these types of problems. With the right knowledge ahead of time, you can walk into closing confidently, knowing your real estate transaction will be completed in just a few hours.

    About the Author
    Author

    Luis Lima

    (Google traductor esta en la parte de abajo de la pagina)

    Hi, I'm Luis Lima and I'd love to assist you. 

    Whether you're in the research phase at the beginning of your Real Estate search or you know exactly what you're looking for, you'll benefit from having a Real Estate professional by your side. I'd be honored to put my Real Estate experience to work for you.

    As a homeowner, What can I offer you?

    • Honesty

    • Free property Marketing Analysis – NO obligation required.

    • Your property will be viewed via Multiple Listing Service (MLS), Facebook, Linkedln, and this website.

    • Do you have units? Don’t worry!

            With my experience I will offer you:

                 * Assist with LA Rent Control issues.

                 * Assist with the bad tenants and guide you how to evict them if necessary.

                 * Properly communicate with tenants regarding any appointment.

                 * I can also be discreet concerning the sale of the property, tenants don’t have to know about it until it’s necessary.

    • I will assist you to prepare your property before, during, and after close of escrow.

                * Monitory an empty property.

                * Meet with a locksmith, inspectors, or any agent if necessary.

                * Manage a janitor or any worker.

                * To place a secure supra box (keybox) if necessary.

    • I will collect, deliver or assist with any document to any office to require to close.

    • In case of probate I am going to work shoulder to shoulder with your Lawyer to obtain a smooth sale.

    • As I have knowledge about home loan process, I will guide you to select the best candidate to your property. 

            Best Buyer = No Escrow Delay

    • Communication is very important, I’m reachable all the time, 24/7.

    As a Buyer, What will you be expected from me?

    • My honest opinion all the time.

    • New and updated list of properties via this wedsite, texts, emails, or by a phone call.

    • I will suggest Lenders, Home Inspectors, or Insurance Agents; but if you have your own, I will assist them to reach your benefits.

    • As first time buyer or investor, I will assure you to receive first hand information about your escrow.

    • First time buyer? Don’t worry! I will explain any document until you fully understand it.

    • I will be there with you even after close of escrow.

    Single Family Resident * Apartments Units * Commercial Residential * Commercial property