Addressing a few common questions about the closing process.
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Today I sat down with Jennie, our transaction coordinator, to answer a few questions surrounding the closing process.
What are the steps in the closing process?
First, we’re going to get under contract. Then we’ll send that contract to the title company and make sure the buyer’s lender gets a copy. About 10 business days after everyone signs, your buyer will have an inspection and submit a list of any repairs they want. After that, they’ll have an appraisal. Finally, the title company will get all the paperwork in line, and we can go ahead and close.
What should you bring to the closing table?
You definitely want to check your driver’s license and make sure it’s not expired. If you’re buying, talk to your lender and see if you need to bring a check. Keep in mind that they’ll need a cashier’s check, not a personal check, and make sure the bank signs it too because they can forget sometimes.
How long does this process take?
It takes about 30 days for an average lender to finish the loan process. Title work can be done in about two weeks, so if it’s a cash sale, the closing can be really quick.
What it says on the net sheet is usually what you’re going to get.
What are the seller’s responsibilities during closing?
There aren’t many. You need to be ready to move out on the day you sign. Make sure your utilities stay on until the day after closing, just in case something happens at the very end. Other than that, sit back and let us take the reins.
What about the buyer’s responsibilities?
You’ll want to make sure your lender has all the paperwork they need upfront so that there aren’t any delays. Set up your utilities and your internet for your new home. Make sure you’re proactive with your lender; ask them if they need anything else whenever you get a chance.
How much are closing costs?
Don’t take this as gospel, but your closing costs will be about 1.25% of the overall purchase price. You can use that to get a quick ballpark estimate. After an offer is accepted, we can get you an exact number from the title company.
Keep in mind that the net money is your money. You’re not going to pay taxes on it unless you pass a pretty high limit. What it says on the net sheet is usually what you’re going to get.
Hopefully, this gave you a better idea of how the closing process works. If you have any more questions about this or real estate in general, call or email us. We’d love to hear from you.