Understanding the Closing Process

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Buying a home is a big step in anyone’s life, so feeling confident on closing day that you understand the process can help ease some nerves. The more you know about the process, the more relaxed you will be, and the smoother the process will flow.

Your realtor and loan officer should provide you with a lot of information and tools to help prior to the day of closing. Your lender should provide you with a Good Faith Estimate so you know all of the costs associated with your loan (if you are obtaining a loan). If you offered on a home, and the offer was accepted, the earnest money deposit will most likely be deposited into an escrow account and the funds will be held until the time of closing.

The settlement agent will prepare you a HUD-1 Settlement Statement which will outline all of the costs for both the buyer and the seller associated with the closing. Here is an example of a HUD-1 Settlement Form: HUD-1 Settlement Form

Closing day is the time where all parties sign papers to seal the deal and ownership transfers from the seller to the buyer. Closing is also a time to make any changes to the transaction before its final (although you usually want this figured out before closing).

Coming to your closing prepared will help you to get those keys to your new home faster and leave all parties in the transaction stress free. Prior to closing (usually 24 hours in advance), you will have a walk-through of the property you are purchasing. This ensures that the seller moved out and everything stated in the sales contract is left in that condition. During your walk-through if you find any major problems, you are able to delay the closing, or ask for money for the repairs.

One of the main things you need to remember to bring to closing is all of your paperwork and photo identification. Here is a site that provides a list of buyer requirements for closings: What to Bring to Closing.

Make sure you know exactly what to bring to your closing to ensure the process isn’t delayed. Always ask questions if you have them, and know that your realtor, closing officer and loan officer are all great resources!

Closing day arrives, and now you need to be ready to sign a number of documents that the closer will be able to fully explain to you. Once the signing is done, the keys are handed over and the house is yours!

After closing, there is usually a behind-the-scenes process. The lender and the closer still work to make sure the funds are all placed properly, and they work on legally completing the purchase. You do not have to be involved in any of this behind-the-scenes work! Having a trusted realtor, closer and loan officer is key, to ensure a smooth process once you are out of the picture.

Network Title is our trusted partner for closings. Network Title, Inc. serves the greater Twin Cities metro area, with clients throughout both Minnesota and Wisconsin. This closing company handles all aspects of real estate closings, including:

  •  Standard Closings
  • Non-Standard Transactions
  • HUD Sales
  • Short Sale & REO Closing Specialists
  • Title Insurance & Other Title Products
  • Flexible Scheduling
  • Mobile Closers & Multiple Closing Offices

Visit Network Title’s Website for important information, forms and client testimonials, and more: Network Title

Network Title, Inc.

Barb Rodriguez
371 Commerce Court
Vadnais Heights, MN 55127

Phone: 651.482.9514
Fax: 651.482.9519
E-mail: info@network-title.com

**Remember, for the most accurate information, it is always important to get the facts from your agent, closer and loan officer specific to your unique situation**

 Sandy Erickson Real Estate Team of Keller Williams Realty
www.ericksonteamhomesearch.com
Sandy@SandyErickson.com
651-269-3487

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