It’s a Deal! Everything You Need to Know About a Real Estate Closing
Did you know that over 5 million existing homes were sold last year? The real estate industry is growing and shows no signs of stopping. If you’ve been thinking about getting into the market, now is the perfect time to dive in.
But buying or selling real estate property is a serious multi-step process. If you’re a newbie, it can feel overwhelming. Everything from getting your mortgage pre-approved to hiring Townsville conveyancing solicitor to handle the legal transfer of the title (property), there’s a lot that happens when closing a real estate deal. Luckily, you can check out this handy guide that breaks down everything you need to know about a real estate closing.
Get Pre-Approved For a Mortgage
If you are looking at buying a home, the first step is to get a pre-approval from a mortgage company. This will help you know what you can afford, and make you more competitive when bidding on homes. Having a pre-approval shows the sellers that you are financially able to purchase the house.
Budget for Real Estate Closing Costs
Before you close on a house, you should understand the costs associated with it so that there are no surprises. Find out about the amount you will owe for taxes on your new home, legal fees, insurance, and moving costs in advance so that you can prepare.
Set Up an Escrow Account
When you are closing on a house, you’ll need to set up an escrow account so that you can transfer the money associated with the deal to a third party until the transaction wraps up. This helps guarantee that no one is cheated during the process.
Do a Title Search
Before you wrap things up, make sure you do a title search on the property to ensure that no one else has any claims to it. This prevents future ownership conflicts. It will give you peace of mind that you own the house alone.
Prepare For a Money Transfer
Automated Clearing House transfer is an electronic system used to transfer money from one account to another without dealing with paper checks. Usually, an ach transfer time takes a day or more to complete, so keep that in mind if you are using it for your real estate closing process.
Get Inspections and Do a Final Walk-Through
It’s important not to skip the final steps of getting a home inspection and pest inspection. These reports can save you a lot of grief if you learn that the house has substantial issues and shouldn’t be purchased. And once you complete these, do a final walk-through of the home before closing.
Ready to Close On a House?
Now that you’ve learned all about how to do a real estate closing, you can approach your own with confidence. Do your research in advance and take the time to get pre-approved, set up an escrow account, hire a lawyer, and do a title search, inspection, and final walk-through. By following these steps you will give yourself peace of mind that the process has been done right. Did you find this article useful? If so, explore the rest of this site for more related real estate and business topics