Buyer’s Tips: Eight Steps to a Successful Closing

According to a recent report from the National Association of Realtors, 86% of homebuyers reported difficulty and confusion in understanding the buying process and paperwork.

Here are the steps to close the sale once the purchase agreement has been signed. Please know I will walk you through this step by step to make sure this is a smooth and enjoyable process.

Step 1 – Contingency removal: The most common contingencies are inspection, financing, and the sale of the buyer’s current home. These conditions must be removed or waived before the sale can close.

Step 2 – Appraisal and title report: The buyer’s lender requires a formal appraisal to confirm the value of the home. This is used as collateral to secure the loan. The title report ensures that the seller has clear title to the property and has the right to transfer ownership.

Step 3 – Prepare closing documents. Title service companies prepare documents that confirm the transaction, prorate funds, etc.

Step 4 – Documents, such as the HUD statement, go to the lender for final review.

Step 5 – Lender gives the “CLEAR TO CLOSE” and the day and time is confirmed for closing.

Step 6 – Buyer either wires funds to the title company (if over $10,000), or gets a cashier’s check for closing.

Step 7- Buyer and Seller, along with agents; meet at the title company for both parties to sign the closing papers. The buyer turns over their down payment check.

Step 8 – CONGRATULATIONS…The seller turns over the keys to the new owner.

There are many opportunities for surprises or delays in a transaction. Part of my expertise is in troubleshooting problems that may potentially arise and handle them before slowing down the process so that we have as smooth a closing as possible.