9 Steps to Closing On Your Home

TL;DR

Learn the nine important steps to successfully close on a property, from going under contract to ensuring all necessary payments and documents are in order.

Transcript

here are nine steps to get you to the closing table first and probably the most obvious one is you have to go under contract meaning you have an agreement between yourself and a seller to buy a piece of property now the next step is beginning the process of executing the terms of the contract and in North Carolina we have two different deposits tha... Read More

Key Insights

• 😚 Going under contract and delivering the due diligence fee and earnest money deposit are the initial steps towards closing.
• 👨‍🔬 Initiating a title search and requesting a title document from the lender are essential for obtaining a title commitment.
• ❓ Inspections, surveys, and due diligence provide buyers with a thorough understanding of the property's condition and any potential issues.
• 💁 Providing accurate financial information, invoices, and contract amendments to the closing attorney helps generate a precise closing statement.
• 😚 Receiving "clear to close" from the lender and promptly sending the loan package to the attorney are necessary for a smooth closing process.

Questions & Answers

Q: What are the two deposits that need to be delivered promptly after going under contract?

The two deposits are the due diligence fee, paid directly to the seller, and the earnest money deposit, paid either to the closing attorney or the real estate brokerage to hold in an escrow account.

Q: What does a title search involve?

A title search checks public records for any judgments, liens, bankruptcies, UCC filings, Deeds of trust, or other instruments affecting the property.

Q: What is the importance of inspections and surveys during the due diligence period?

Inspections and surveys allow buyers to thoroughly evaluate the property and ensure there are no hidden issues or encumbrances.

Q: What is the purpose of providing invoices and contract amendments to the closing attorney?

These documents help generate an accurate closing statement, showing credits, debits, and what the buyer needs to bring to the table for closing.

Q: What does it mean to receive "clear to close" from the lender?

"Clear to close" signifies that the lender has reviewed the buyer's finances, ensured their ability to repay the loan, and approved the final terms.

Q: Why is it important to have the loan package sent to the closing attorney's office promptly?

Sending the loan package in advance allows the attorney to review it for accuracy and address any discrepancies before the closing, avoiding last-minute surprises.

Q: Why is it crucial for all funds to be in the closing attorney's trust account before closing?

Sufficient funds are necessary to pay all parties involved in the closing, including the seller, lender, and any other expenses, ensuring a smooth and successful closing process.

Summary & Key Takeaways

• Going under contract with a seller and delivering the due diligence fee and earnest money deposit in a timely manner are the first steps to closing.

• Initiating a title search and requesting a title document from the lender are crucial for obtaining a title commitment.

• Conducting inspections, surveys, and due diligence on the property is an essential part of the process.

• Accounting for all financial aspects and providing necessary documents to the closing attorney is necessary before receiving a final settlement statement.

• Obtaining clear-to-close from the lender and ensuring the loan package reaches the closing attorney's office are important steps before closing.

• All required funds must be in the closing attorney's trust account before proceeding with the closing, recording, and disbursing process.