Closing FAQ
Pre-closing:
You are so close to the closing table! Here‘s what’s going to happen leading up to you receiving the keys:
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An appraisal is an estimate of the value of the property by a licensed professional appraiser. Once any problems during the inspection are solved, the appraisal will be ordered by the lender and paid for by you. The goal of the appraisal is to verify the value of the property for the lender. The contract is contingent upon whether the appraisal comes in at or above the purchase price. If the appraisal comes back short, we will be back to the negotiating table.
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You have 5 days from the date of contract execution to begin the mortgage loan application. During the 30-45 days before closing, the lender will be finalizing your mortgage.
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Unless the seller already has a recent & acceptable survey of the property, the buyer may choose to get a survey. The survey is a sketch showing a map of the property lines/boundaries among other things. The survey will show if there are any encroachments on the property. Note: in our area, surveys can take 6 weeks or more to be completed.
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The title company will conduct a title search to ensure the property is legitimate and find if there are any ou standing mortgage liens, judgments, restrictions, easements, leases, unpaid taxes, or any other restrictions that would impact your ownership associated with the property. Once the title is found to be valid, the title company will issue a title insurance policy which protects lenders or owners against claims or legal fees that may arise over ownership of the property. This will also be a part of your closing costs.
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The magic words! It means the mortgage underwriter has officially approved all documentation required to fund the loan. All that remains is the actual closing process.
Closing:
You've gotten the "clear-to-close" and scheduled your closing date and time – let's answer some questions you may have about closing day…
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The final walk-through is exactly what it sounds like – it allows the buyers to do one last walk through before closing to confirm that the seller made the repairs that were agreed upon and to make sure no issues have come up while under contract. We will typically schedule to do this within 24 hours prior to closing.
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Situations vary, but you can expect some combination of these folks: Buyer (that’s you!), seller, real estate agents, closing agent/attorney, mortgage lender, and title company representative.
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Stretch those fingers and get ready to sign, sign, sign. At closing, the seller will sign ownership of the property over to you, and you’ll sign to receive possession.
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Bring a photo ID and a cashier’s check to pay any closing costs. Your agent will tell you any other documents specific to your situation. The closing process is relatively simple but be prepared for A LOT of pape work. (And always, always, always ask if you have a question along the way.) The good news is once you’ve signed the last page, it’s time to get a hold of those keys and celebrate!