Closing day is the most anticipated day of the home buying process. The stressful search, negotiations and waiting period are over, and the property will officially become yours. Once the last signature is signed at the closing, the keys are handed over, and you’re a new homeowner. As a buyer, it may feel like there are endless documents to sign during this process. While your real estate agent and attorney will be there to guide you on closing day, it’s also helpful to know the process. Read on for insight into the closing process.
Where does the closing take place?
The closing takes place at the office of a title company. It’s usually at the title company affiliated with the seller’s attorney.
Who attends the closing?
The buyer, buyer’s attorney, and real estate agent attend the closing to sign all the necessary documents. However, the seller and seller’s attorney don’t always attend, as the documents they need to sign can be pre-signed. This can make the closing go faster. Instead, a representative from the title company facilitates the translation and ensures all the documents are signed and the correct amount of funds are exchanged.
What happens at the closing?
At the closing, the buyer signs all the remaining contracts that transfer property ownership. The buyer’s mortgage lender will pay the seller and transfer home ownership to the buyer. Additionally, the buyer will pay the down payment, closing costs and any additional fees the lender requires.
What does a buyer bring to the closing?
Buyers should bring their ID and the funds for the required payments. Additionally, bringing all the signed documents that have been completed up until this point in the closing process is helpful, such as the inspection report, the agreement and insurance policies.
How long does the closing take?
On closing day, the closing itself takes several hours. However, the closing process from start to finish can take between 30 and 60 days. This depends on all the process steps, such as pricing negotiations, findings from the inspection report, if the house appraises, the mortgage lender, and the speed in which both parties move. Buyers can help the process move along by getting pre-approved before homebuying, avoiding any major purchases that can impact the FICO score, signing mortgage documents immediately, and communicating promptly.
Can the closing be delayed?
The closing date is determined during the negotiation process between the buyer and seller. However, in some cases, the closing date may be delayed. This postponed closing date may result from financing issues, title issues, home repair delays, appraisal issues, or issues with the final walk-through, among several others.
