What to Expect When Closing on Buying Real Estate

Buying a piece of real estate or a home is an exciting process. In a perfect world, once a buyer and a seller are in agreement on the contract’s terms, both parties can simply look forward to the closing day. In reality however, before the deal can close, there are several things that must happen to ensure a stress-free transaction.

Inspections
Most real estate transactions involve one or more inspections of the property. A surveyor may need to come and mark property lines. A pest inspector may come to check for the presence of termites or carpenter ants. A radon test and inspection may be done for houses. The results of these inspections can have impacts on the closing date of the transaction.

Lien Resolution
The title agency and seller are tasked with ensuring that the property has no liens on it. A past due utility bill or lien from a home improvement project could impact the closing of the property. Any liens should be resolved between all involved parties so that the sale can close on time. Buyers can purchase title insurance to protect them from undiscovered or unresolved liens.

Locking in a Mortgage Rate
Buyers will need to lock in a mortgage rate unless they are paying cash. Locking in the mortgage rate is a step between the mortgage lender and the buyer. If the closing takes longer than expected, a mortgage loan rate could expire. Buyers may put stipulations on that possibility in their real estate purchase contract.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s