Closing is the last step in your home buying or selling process. Since closing varies from property to property and the involved parties, you have to be very careful when learning how to completea real estate deal. In this article, I will talk about the closing process from the “BUYERS PERSPECTIVE” so that you know what to do and what not to do before sealing the deal with the seller.
5 Tips for a Smooth Closing
1. Start the Process Slowly & Confidently
The first step of the closing process as a buyer is to deposit the earnest money. The earnest money or the good faith deposit is the nominal amount of money that the buyer deposits into an escrow account to ensure the seller that he/she has the intention to buy the house. You don’t have to worry about this money because the good faith deposit is later deducted from the purchase price.
However, if are no longer interested in the deal and the reasons are not listed in the contingencies, you will lose your earnest money completely. Therefore, be very sure before starting the closing process.
2. Don’t Forget the Inspection
Even when you have inspected the property yourself and you are ready to invest in it, don’t forget to appoint a professional inspector to examine the home on your behalf- he/she may find out things that you didn’t see. The home inspector will note the home’s condition and inform you if there are any large concerns or not. This step will help you to gather all the information and might give you an upper hand while bargaining.
3. Get it Ready For the Appraisal
Before closing,a home appraisal is also very important, especially for those buyers who are taking a loan or mortgage out for the investment. When you are ready for the closing, the lender will send over a professional to inspect the home and give his/her opinion if the agreed-upon price is fair or not. Theprofessional’s opinion is based on the visual inspection, comparing the selling price of similar properties in the area and other aspects like amenities, floor plan, etc.
4. Prepare& Check the Documents Carefully
Once the appraisal is done and you have the money for the investment, it’s now time to prepare the documents. You should be very careful and attentive while preparing legal documents with your attorney.
5. Always Go for the Final Walk-through
When you are done with everything related to the closing process, don’t hesitate to go for a final walk-through. The main purpose of this final inspection is to see the condition of the property, how it finally looks after all the promised repairs and if there are all the things that were promised still in the house or not. When you are satisfied with how the property looks, sign the papers to make it your own.0