In today’s third installment of my series on successful home purchases, I’ll discuss what you need to know about the closing process.
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When I think about the closing process, I like to break it down into three categories:
-The performance deadlines stated in the contract
-The lending process
-The closing attorney or title process
The performance deadlines that are stated in your contract must be satisfied within 30 days. One of the biggest ones to pay attention to is the inspection contingency. As a buyer, you have that time to hire a licensed home inspector to come and inspect the home to discover if there are any material defects that need to be resolved or negotiated in the contract. Usually, the decision to proceed with the transaction or not is up to the buyer’s discretion following the inspection.
The second part of the closing process is the lending process. The lender is likely going to require an appraiser to come out to the property; they want to know that the value is there, since they’re using the property as an asset to secure the loan for the buyer. It’s for their safety and comfort.
It’s also during the lending process that you should make sure not to significantly change your CIA—your credit, income, or assets. Doing so could be detrimental to you in the loan process.
The final part is the closing attorney or the title process. The title company will ensure that the seller actually has the right to sell this home by checking that everybody who has some sort of claim on the home is made whole after the fact. They’ll also transfer the deed for the money, and ultimately, the title company or closing attorney will oversee the actual close of the property.
After my video on negotiation and home preparation, covering the closing process concludes my three-part series about how to have a successful home purchase.
If I’ve raised more questions than I’ve answered in this series, you are absolutely encouraged to reach out to me. I’d love to speak more in-depth with you.