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Real Estate Updates

Real Estate Closing Procedure

Closing the deal’ is the final part of a real estate transaction. It entails the settlement and transfer of both the money and the real estate title, respectively. It is probably the most crucial part of the venture since this is where both parties get what they want.

This article briefly explains the procedure behind a typical real estate closing.

What are the Steps in a Real Estate Closing?

While the steps in a real estate closing may vary between different states, it still generally follows a basic structure. First, the seller and they buyer meet together with their respective lawyers. Then, the documents necessary to the deal are signed and notarized. After that, it is simply a matter of transferring the funds from the buyer’s account to the seller’s.

The whole process can be done personally and face-to-face, or through an escrow agent. Most people opt for the latter as it entails having a disinterested party to facilitate the deal. Particularly, the escrow agent is put in charge of receiving all the vital documents as well as overseeing the deal’s conclusion through the successful transfer of funds and titles.

The process of closing is simple enough. Keep in mind that both parties should receive an estimated closing date. This should give you ample time to look everything up and make sure that no mistakes are made. Any mistakes in the paperwork can cause a delay.

Details on Real Estate Closing Costs

Like in any business deal, closing a real estate deal comes with a few extra costs on top of the price for the property itself. It would do you well to familiarize yourselves with these fees so that you do not get blindsided once you close that deal.

Real Estate Closing Fees

The very moment you take out a mortgage loan, you will be slapped with an origination and underwriting fee. This is to cover the cost processing your loans and researching your eligibility to take on one. Applying for a loan usually comes with a credit report, so you will also have to pay for one.

After that, you will have to get an appraisal and a home inspection to determine the value of the property. This also usually comes with flooding determination and pest checks that have their own separate rates.

Of course, by the time you actually buy the house, you will still have to deal with other fees. This would include the document preparation costs, owner’s title insurance, on top of the notary and lawyer’s fees. Of course, you will also have to pay the property tax and the real estate commission once the sale has been finalized.