How Do We get to The Closing Process?
What do we do after we find the home of our dreams
What is the Next Step
Here is an excellent explanation
The only difference is that in Pennsylvania a Clear to Close notice is sent to your Real Estate Agent instead of an attorney and the date has already been scheduled. In Pa we use Title agents
How Do We get to The Closing Process?
It’s an exciting time when you find the home of your choice. After going through the mortgaging process, the inspections, repair negotiations if any, we have to finalize the transaction.
The closing is initiated by your lender letting you know that all your financial requirements have been satisfied, and all contingencies have been satisfied. A ‘Clear to Close’ notice is sent to your lawyer, who in turn will contact the seller’s lawyer to let them know we’re ready and a day and time are selected, satisfactory to all parties.
The contingencies that must be satisfied and resolved by the team of professionals working for the buyer can be as follows:
- Contingency removal: These conditions must be removed or waived before the sale can proceed.
- Home Owner’s Insurance: The lender wants to know that their mortgage will be secured in the event of a catastrophe to the home. A homeowner’s insurance policy with the bank noted as the lien holder must be secured and paid for in advance and proof sent to the underwriters. Later, the renewal policy can have funds escrowed monthly in the mortgage payment.
- Appraisal and title report: To the lender who requires a formal appraisal to confirm the value of the home, the title report ensures that the seller owns the property and can legally transfer ownership to you.
- Prepare closing documents: This is usually done by Escrow service companies or real estate attorneys.
- Property walk through: Just before closing, as the seller has vacated the home, the buyer and their agent walk through the home to check the final condition before signing the contracts. This protects the buyer in the event the seller had done damage to the home as they were leaving, or took items from the home that should have stayed with the home. An allowance is made by the lawyers and the funds credited to the buyer.
- Sign closing documents
- Signed documents go to the lender for final review
- Deed is recorded and funds disbursed.
- Seller receives proceeds
You now receive the keys to your new home.
How Do We get to The Closing Process?
Frequently Asked Question #8
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Ed Silva RE/MAX Professionals, www.edwardsilva.com 203-206-0754
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