Real estate closing is an important step in the home-buying process. It’s the final stage, where all parties come together to finalize the sale of a property.
In Part 1 of this guide to real estate closing, we discussed pre-closing preparation, key players, common documents, and costs. In this post, we’ll provide a detailed guide to the actual closing process. We will also cover what happens after closing and common pitfalls to avoid.
Real Estate Closing: The Process, What Happens After, and Common Pitfalls to Avoid
The Closing Process
As a homebuyer, here’s what you can expect during the closing process:
- You will need to review and sign all necessary paperwork, including the loan and title transfer documents.
- Paying closing costs is also part of the process. You will need to pay property taxes, title insurance, and other fees.
- Buyers must show that they have homeowner’s insurance before completing the process.
- You will typically need to do a final walkthrough of the property. The walkthrough ensures that everything is in good condition and that the seller has completed any repairs.
- On the closing day, you must sign all necessary paperwork and pay any remaining closing costs. Once the paperwork is signed and the transfer of funds is complete, you will receive the keys to the property.
It is important to note that this is just a general overview of the closing process. For a more detailed guide on closing a real estate sale, please refer to our previous article.
What Happens After Closing?
Buying a home is a big deal, and it’s exciting to finalize the deal. But what comes next?
Here’s what happens after closing:
- The title company will record the deed with the appropriate government office after closing. It makes the deed official and ensures the buyer’s recognition as the legal owner.
- With the closing complete, the seller can give the keys to the new owner.
- The new owner can now take practical ownership of the property. That means you can move in or start exercising your property rights in other ways.
- After closing, you should check with your lender and title company. It is a good idea to ensure everything is official and there are no issues. As the buyer, you should keep a copy of all closing documents.
Common Closing Pitfalls
Closing a real estate transaction can be complicated and time-consuming. Common pitfalls that can delay or derail the process include:
- A failure to review documents
- Delays in closing
- Issues with funding
Ready to close on your new home?
We hope this comprehensive guide has been helpful for you as you navigate the final stages of the home-buying process. You can use this as a reference on your journey toward closing on a home.
Title Services in Tennessee
Do you need help closing on a home in Tennessee? Click here to contact Title Group of Tennessee. We offer a range of title services to help buyers and sellers during real estate closing.
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