This is the first of a three-part series on real estate closings.
Purchasing residential or commercial real estate is a huge undertaking, especially in today’s market. As you reach the end of your journey toward purchasing that perfect home or business property, there are steps you need to take to ensure a smooth closing.
- Contact Lebanon Title Company to start the closing process. You have the right to choose the title company for your real estate closing so simply tell your realtor and/or lender that you wish to use Lebanon Title Company for your settlement needs.
- Get all contingencies squared away. Most purchase agreements have contingencies, things that buyers must do before the real estate transaction is official, which typically include an inspection, appraisal, and financing.
- Clear the title. Before you “take title” to the property and establish legal ownership your mortgage lender will require a title search and title insurance to protect you from legal claims to the property.
- Get final mortgage approval. You’ve made the down payment, but your loan must go through the underwriting, which is a process to ensure you’ve represented yourself and your finances truthfully, and that you haven’t made any false or misleading claims on your loan application.
- Complete a final walk-through. Most sales contracts allow buyers to do a walk-through of the home within 24 hours before closing. This is when you confirm that the previous owner has vacated, double-check that the home is in the condition agreed upon in the contract, and ensure any problems revealed during the home inspection, which the sellers agreed to fix, are complete.
- Gather the necessary documentation for closing. Real estate closings involve a lot of paperwork (and signing) so make sure you have all of your required papers in order including proof of property insurance, a copy of your contract with the seller, inspection report, any paperwork the bank required to approve your loan, and a government-issued photo ID (name on the ID must match the name that will appear on the property’s title and mortgage).
With proper planning and preparation, closing on your new home or place of business will be a dream come true!