If you are looking into buying a home or property, congratulations. This is a great way to build your real estate portfolio and to focus on making an income from your investments.
At the same time, this process can seem tedious and confusing to those who aren’t familiar with it.
What is a real estate closing?
During a closing, the goal is to complete the financial and legal documents needed to settle the sale of the property. At the end of the closing, the new home or property owner will have access to the property.
At a home or property closing, you will start by looking over multiple legal documents related to the mortgage and sale. The property title will be signed over to you from the previous home or property owner during this process.
You may want to have your real estate attorney with you, as they will help you register your new deed and make sure that your home is appropriately transferred into your name. They will also make sure that all contractual documents are signed correctly and are drawn up the way that they should be to be legally binding.
What documents do you need to sign?
Some of the legal documents that you’ll need to sign during the closing include:
- Transfer tax declaration
- Mortgage agreement and note
- Property deed
- Bill of sale
- Closing disclosure
Prior to all of this, you and your attorney will have worked together to resolve underwriting issues, title problems and other concerns.
What do you need at a real estate closing?
At the closing, you will need to have a cashier’s check or wire transfer ready to pay any fees you owe. For example, you may owe closing costs or commission fees that must be paid before the transfer can be completed.
If you’re new to this process, it’s valuable to have someone work with you to answer any questions you have and to represent you at closing. This is a legal transfer of property, so having your attorney look over the contracts to make sure that they are binding and protective of your purchase is essential.