What Happens at A Real Estate Closing Day?

Sujan Afi S

Introduction

The day of closing is a big day for a home buyer because in this very specific day he/she will own the property which may be his/her dream house. 

You know that you need to sign a lot of documents in the day of closing. But what actually happen in closing day is may be a mystery for you – if you are a first time buyer. Even the day of closing of a real estate deal seems to be mystery to the average buyer also.

But no worry – in this blog we are going to discuss about what actually happens in the closing day of a real estate deal,

What is a real estate closing day?

In a very simple words the closing day for a real estate deal refers to that day in which all the final process of purchasing a home or other kinds of real estate property will be done, such as – transforming the ownership of the property from seller to the buyer, all payments should be completed to the seller or developer, and signing of all kinds of final documents of ownership and insurances etc. The closing day refers to the final steps of buying a house or any other real estate property. It is the final performance for all the agreements a buyer made to the seller for purchasing the real estate property like house. If you purchase the property based on solely your cash payment then there is no scope to enter any lender in the process of closing day. But if you manage the finance with the help of a lender then you should require to enter the lender in the process of closing a real estate deal on the day of closing.  

What really happens in a real estate closing day?

Now we need to focus a closer look on what actually happens in a real estate closing day which is discussed below:

  1. Transformation of property title and ownership: In the day of a real estate closing the property title as well as owner should be transferred from the seller or developer to the buyer. 
  2. Registration of new deed: The registration of new deed in the name of buyer is made by the closing agent or lawyer or notary officer in the appropriate government office in the day of closing. After the completion of the registration process the home buyer will be listed as the official owner of the property.
  3. Documents Required: You should arrange all required documents very carefully and bring it in the closing day. The documents required to sign for closing the deal may be are – property deed, bill of sale, tax declaration, mortgage agreements, loan application, and closing disclosure etc. Besides that you also need to bring few other documents like photo ID, residential proof, insurance certificate etc.
  4. Signing of agreement documents/paper: The home buyer need to check all the terms and conditions of the agreement documents which is prepared by the real estate agent/escrow line by line very carefully and after checking all details in the documents he/she need to sign the required documents for the completion of the deal.
  5. Final payment: On the day of closing the buyer should pay the total closing costs of the deal. All kinds of payment associated with the purchase of the property should be clear from the buyer side in this special day. Therefore, you should ensure that you are bringing the cashier’s or certified check in the day of closing. 
  6. Send the signing copy paper to the lender: If there is an involvement of lender then the copy of signing paper should be send to the lender for receiving the loan approval money.
  7. Delivering/hand over the property keys: After the official completion of the deal the seller/real estate agent should hand over the property keys to the home buyer in closing day.
  8. Distribution of agent commission and other funds: The distribution of the agent commission and other funds should be made in the closing day by escrow agent.
  9. Income of seller from selling: The seller will receive the proceeds from the closing deal after the payment of mortgage balance and closing costs.

Conclusion

The day of closing is the most vital day in the entire process of the completion of a real estate deal. Therefore, you should be very careful for this day. All the terms and conditions should be carefully check before signing and final completion of the deal. If you are unable to understand anything in the final paper of the deal then don’t hesitate to go for final clarification from the specialist. Because once the documents is signed then you have nothing on your hand. So, be patient and take your time to check the details before sign anything in closing day.

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