Step 11: Begin the Closing Process
After the negotiating is over, and after an offer has been made and accepted, comes the closing process. We will break this down into two steps, starting with beginning the closing process. First, what is the closing process? Essentially, it involves everything that’s needed to make the home sale and home purchase complete, legal, and finalized. It’s also referred to as settlement or escrow, and is highly automated and computerized. Although nearly pro forma (“done as a matter of form” or “standard”), the closing process is meant to bring all the parties involved to the same platform. Before the process of closing can begin, the buyer must inspect the property personally. Why? You have to check to make sure that absolutely nothing has changed regarding the property’s condition following the signing of the contract (purchase agreement). If something has changed, then you must notify your agent and go back to the drawing board. What’s all involved in the closing process? The closing process can seem confusing and complicated, particularly for first-time buyers, but when compared to other aspects of searching for a home and the home-buying process, it’s actually a brief component, essentially involving the completion of the transaction to which all parties have agreed, based on the contract. The main “goal” of the closing process is to transfer the title of the property from former homeowner (seller) to new homeowner (buyer). It includes the need for title insurance, since there could be errors, unreported claims, or other flaws in the review of the property’s ownership. All usual property transfer taxes must be paid during closing. Further, you need to settle all other claims, including closing costs, legal fees, and adjustments. The closing
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