Wednesday, September 26, 2012

The Home Buying Process: Step #9

This is the ninth post of ten in a series about the home buying process.  The purpose of this series is to educate the reader on different steps in the process to ease any anxiety of the unknown.  Whether you are a first-time buyer or have purchased in the past, it is always advantageous to be up-to-date with the latest news and information to make your path to home ownership as smooth as possible.


Step #9:  Closing
At some point in the last 48 hours your agent has taken you through your soon-to-be home one last time for a final walkthrough.  This walkthrough was to check that all requested repairs were properly made, that all appliances and fixtures that were to remain in the home were still present, and that the home was still in the shape in which it was presented during your showing.

The closing marks the end of the home buying process.  Be prepared to go through a ton of paperwork.  You will sign your name or initial more than you can imagine.  All of these documents are for your benefit, so be prepared to be patient, and do not be afraid to ask questions before signing.  Go to closing with a learning mindset, and be certain you understand the documents you are signing.  The title officer will give a brief explanation of each as you go, but do not get impatient and just begin signing.

This link from Chicago Title is a good resource for learning about title insurance and escrow.  A question buyers often ask is "do we need all of this?"  I'm not sure you are going to find many agents that say "no."  Another topic of interest at the closing will be your truth-in-lending statement and other mortgage documents.  You will receive the final disclosure of the interest rates on your loan as well as a statement that will tell you your exact monthly payment.  You probably will already have a pretty good idea of this beforehand through your interactions during the buying process, but it is always nice to have closure.  Bankrate.com released a survival guide to real estate closing that gives a few additional explanations of the closing paperwork.

Items to bring to closing:
-  Certified check for closing costs and down payment
-  Photo IDs
-  Social Security card/ information
-  Addresses for the past 10 years

Two final events close out the process:
1.  Delivery of buyer's funds-  The bank or lender wires the funds for your mortgage in the amount of the loan.
2.  Delivery of the deed-  The deed is the legal document that transfers ownership of real estate.  It will name the buyer and seller, will contain the legal description of the property, and will contain all necessary signatures to make the transaction official.

CONGRATULATIONS!  You are now officially a homeowner.  The deed has been transferred and you are ready to receive the keys and move into your new home.

Step #10 will be a checklist for moving in that includes utilities, insurance companies, local contacts, and a number of other things you need to think about as you begin your new journey!

Take care,
Scott Morrison

Click here to search for a home for sale in Gahanna Ohio


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