Closing a real estate deal means the home you have yearned and worked for all this time is finally yours. But it’s not as simple as handing over the money and moving in. There are multiple steps that still need to be completed to ensure the closing goes smoothly.
Here is what you need to remember to effectively close your real estate deal:
An escrow account is often a required part of your home loan, especially if you are a first time homebuyer or have a small down payment. Even if it is not required, it is highly recommended as an escrow account is a safe place to hold money and documents related to the transaction until everything has been settled and a secure truncation is guaranteed.
Before you sign any paperwork, get a trusted real estate attorney to review it first. The language can be confusing to buyers and an attorney will be able to interpret and explain it to you. That way, you can understand what it is you are signing.
Before closing on your real estate deal, review all closing costs associated with the deal.
Carefully review these costs to ensure that they are correct and are not stuffed with junk fees that are designed to bloat the costs, causing you to pay more than you reasonably should. If there are any blank lines or spaces in the paperwork, do not sign them. Wait until they are filled, otherwise these blanks can be filled after the fact.
Closing cost assistance is available to buyers who need help covering their closing costs, but be sure to review all the rules and stick to them so you aren’t stuck with fees or high interest.
Before closing on the home, walk through it again 24 hours before closing. This helps ensure that the owners are no longer occupying the property and the property is in an acceptable state.
If repairs are needed, work out repair solutions with the owner.
If something was revealed in the inspection like a leaky roof that will need to be repaired, you may want to renegotiate the price to reflect repair costs. Alternatively, you could negotiate for the seller to make the repairs.
Contingency clauses are clauses added to a real estate contract by either seller or buyer for the purpose of releasing a party from contract obligations if a provision isn’t met. For example, if repairs were not made when the seller said they would be, the buyer is released from the contract. Make sure all contingencies have been resolved by this point and officially removed in writing.
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