10 Easy Steps For Property Buyers
The real estate closing process is all about transferring ownership of any property from the seller to the buyer, and closing a real estate deal is not as easy as it sounds. It can be stressful, especially without the involvement of an experienced real estate closing attorney like Landon A. Dunn. It involves several steps.
Step 1: Opening Escrow
Escrow, a legal agreement, allows the third party to receive as well as distribute money or assets on behalf of the seller and buyer. The money or assets will be released by the third party only when the terms of the agreement are met. Opening an Escrow account is a safe option since it protects both the buyer and seller. When you open an Escrow account, you will be assured that you are not going to be cheated. The third-party will hold all the documents and money until everything is settled. Going into Escrow ensures secure transactions.
Step 2: Doing A Title Search And Getting Insurance
Like the previous step, this one is also a safety measure. When you do a property title search and get title insurance, you will be on the safe side. Conducting property title research will help you get all the public records on the property. In this way, you will know whether there are any third-party claims on the property. A title officer can help you with this.
On the other hand, title insurance will protect you from any financial loss, resulting from any defects in the property title. It protects both the owner and lenders against any property damage or loss.
Step 3: Hiring A Real Estate Closing Attorney
It’s true that hiring an attorney is not mandatory. But, if you want stress-free, smooth and quick real estate closing deals, you can consider hiring an experienced real estate attorney.
Landon A. Dunn, a professional attorney with more than 35 years of experience, specializes in real estate closings. Whether it is about providing necessary legal advice or preparing documents, experienced attorneys like Landon will ensure a smooth real estate closing process. Hiring a real estate attorney will thus provide you with peace of mind. Because you will know that everything will be done correctly.
Step 4: Negotiating Real Estate Closing Costs
Real estate closing costs or junk fees include application review fees, administrative fees, appraisal review fees, email fees, processing fees, ancillary fees, and settlement fees. These fees can be unexpected, and you may end up paying more than the average closing costs. Therefore, having knowledge about the closing costs is necessary. Also, negotiating the junk fees, even legitimate closing costs is a must. In this way, you can save a lot.
Step 5: Doing A Home Inspection
A home inspection is an integral part of the real estate closing process. Although many will say that this step is not that important, we will say the opposite. When you rely on a home inspector, you can expect to have a complete report about the property’s condition. The report may cover the following – the property’s heating system, plumbing issues, central air conditioning system, electrical system, visible insulation, the roof, ceilings, walls, door and windows, basement, etc. Thus, you will know whether the house is in good condition.
Step 6: Negotiating More
Closing real estate deals is not an easy task – you might have realized it by now. You need to protect yourself, and your aim should be to get the best deal. Keeping this in mind, consider evaluating everything. If you feel like the original offer price is not reasonable, then don’t think twice about negotiating the price. Once the home inspection is done, you will know whether the offer price is reasonable.
Step 7: Eliminating Contingencies
Before buying a property, you need to remove the contingencies on or before a certain date. Being a buyer, you need to provide one or more contingency removal forms. Make sure that they are signed. Thus, the contingencies will be removed.
Step 8: Arranging Payments
Buyers often have to deposit earnest money when they sign the purchase agreement. Now, the earnest money is a deposit that the buyer pays to the seller. It indicates the buyer’s faith and interest in purchasing the property. The seller will get the earnest money if the buyer refuses to purchase the property. In case the seller refuses, the buyer will get the money back.
To close the real estate deal, you need to make the required payments to escrow. If you fail to meet the funding requirements, the seller will get the earnest money. Also, there are chances that you will have to pay the additional charges for various services.
Step 9: Doing A Final Walkthrough
The final walkthrough is no less important than the previously mentioned steps. It allows the buyer to check everything thoroughly before closing the real estate deal. This ensures that the home is in the same condition it was when the buyer agreed to purchase it.
Step 10: Signing The Papers And Closing The Deal
This is where you are going to close the real estate deal. Once you find that everything about the property is okay, it’s time for you to sign the papers. Once the paperwork is done, the property will be yours; officially, you will be the owner. This is a critical process. So, don’t rush. Just take your time, go through all the papers carefully before you sign them.
Make sure that all the agreed terms are properly mentioned, and the interest rate is right. If you find it difficult to understand, don’t hesitate to seek help from a professional agent. He or she will help you understand everything, including the complex legal terms.
Now that the paperwork is done, you have become the owner of the property. Congratulations! Closing a real estate deal may seem to you difficult and time-consuming. But, when you follow the right steps and hire a real estate closing attorney like Landon A. Dunn, it is likely to be done smoothly. With more than 35 years of experience, Landon A. Dunn is there to give you practical advice about any legal problems. Specializing in estate planning, estate administration, and real estate closings, Landon A. Dunn ensures a smooth closing process. To get the best advice for any real estate needs, don’t hesitate about seeking help from Landon.