Purchasing your new home for the first time is nerve-wracking. Countless hours are done in research but still, you feel like you don’t have enough information to go through with everything proficiently. Well, who is? It’s your first time.
If you’re reading this now, we hope we can at least help you with what to expect throughout the closing process.
Closing is the final step of your real estate transaction, it is where the signing occurs and the ownership of the property is formally transferred to you and you can finally start to move in.
First, we recommend that you get pre-approved for a mortgage so that you know your limit when looking into properties, which lets you save time and effort. When you get your pre-approval letter, it will give you more bargaining power and it will indicate the seller that you have secure financial backing.
When you already decided on the property that you want to buy, the following process below takes place:
- Opening of Escrow – this is where you have a neutral third party hold the money and documents related to the transaction until all is settled. You should choose a title company instead of a real estate attorney because they can provide you all the services necessary in the closing process. We can never emphasize enough that a good title company is really important when it comes to buying a house, especially when it’s your first time. We can provide you assistance throughout the process and give you and the seller honest, transparent, and neutral transactions. To know more about escrow, you can refer to this link: https://fltitlecenter.com/escrow/
- Title Search & Title Insurance – this provides security for both seller and buyer. A title search is the examination of public records of the legal ownership and claims in the property while Title Insurance protects both the real estate owners and lenders against loss or damage occurring from liens or defects in the actual ownership of the property.You might be asking, what makes it different from Home Insurance? Well, Home insurance protects you from future events while Title Insurance protects against claims for past occurrences
- Determining and negotiating the closing costs – you have to closely examine the itemized list of charges and fees and try your best to negotiate to shorten the list and make sure you get the closing cost. In this area, we are certain that we can provide you the best closing cost compared to other title companies, as we don’t list ‘Junk Fees’ and we surely value our clients’ business.
- Home & Pest Inspection – this determines if there’s any problem with the property and its surroundings. Keep in mind that if there’s any problem found, you can have the seller resolve it or you even back out of the deal.
- Renegotiating offer – Well, there’s no harm in asking. But if there are issues found in the home inspection, you can ask the seller to drop purchase price or have them fixed the issue (included in home inspection contingency)
- Locking down of interest rates – With the interest rates fluctuating daily, it is smart to lock in the lowest rate possible. Consider that rates are subjected to factors like region, kind of property, type of loan, and the applicants’ credit score.
- Removing of Contingencies – contingencies must be removed in writing by certain dates stated in your purchase offer.“Your real estate offer should be contingent upon the following five things:
- Obtaining financing at an interest rate not to exceed what you can afford
- The home inspection not revealing any major problems with the home
- The seller fully disclosing any known problems with the home
- The pest inspection not revealing any major infestations or damage to the home
- The seller completing any agreed-upon repairs”
- Depositing of funds into Escrow – this is the stage where you start to feel the excitement of moving in your new home. You’re very close to having the keys at this stage because you will be depositing your down payment upon signing the purchase agreement.
- The final walkthrough – this is your last walkthrough of the property before it becomes your home. This is very important to check that no damage is acquired between walkthroughs and when the closing is finalized.
- Signing – the actual date of closing. Expect this to be a very happy day! You, the seller, notary, or mortgage lender will be in the same room and will be reading and signing the documents together.We, at Florida Title Center, also offer eClosing, the difference between eClosing and the traditional closings is that during eClosings you get to review your documents prior to the day of the closing and you get to sign and close on your new home anywhere in just minutes and all the parties will be in their very own virtual meeting room. Sounds great, right? You can learn more about this at our Free eClosing Demo https://fltitlecenter.com/remote-online-notarization-realtors-registration-for-a-free-demo/
Closing on your new home for the first time may be one of the unforgettable days of your life. It is important that you are very well informed and guided within these processes. Though the closing process may seem a lot, it is worth it that you learn and enjoy every step of the way. As they say, Experience is the best teacher. Also having the best people to work with is key to a much easier and faster closing.
Good luck on your first closing & Best wishes to you in your new home!