Buying Your First Home: The Walkthrough & Closing
As the buyer of a new home, today is the big day, the closing, the final step of your real estate transaction. At the closing, the ownership of the property will be transferred to the buyer, namely you.
Before going to the closing table, we will start by performing a final walk-through of the house and a walk around the property. Yes… Carissa & Douglas will be with you every step of the way. :-)
· We will assure that the seller and previous occupants have vacated the premises.
· We will verify that all agreed upon repairs have been performed successfully.
· We will check to make sure that there are no additional damages that have occurred since the home inspections.
· We will confirm that everything that you expected to be removed from the premises is actually gone… and that any items included as part of the sale still remain.
· We typically schedule your property walkthrough just prior to the closing. As part of our final due diligence, we will ensure that the property is as it should be prior to closing.
Next, we head over to the seller's attorney’s office, as we do for most closings, and we are more than happy to accompany you to assure that everything proceeds smoothly.
You will first meet with your attorney and they will review all of the many closing and mortgage documents with you, explaining each document and their specific terms as you sign them. The seller’s attorney usually steps in a little later, giving your attorney the opportunity to cover the paperwork with you ahead of time.
The legal and mortgage related documents include:
The Loan Estimate (loan terms, interest rate, closing costs)
The Closing Disclosure Document (reviewed 3 days in advance of closing)
The Initial Escrow Statement (any amount your lender will pay on your behalf from escrow, such as taxes)
The Mortgage Note (your promise to repay the loan)
The Mortgage or Deed of Trust (which secures the note and gives the lender claim against the home if, for some reason, you do not pay the mortgage)
Your attorney has already performed a title search to make sure that the title is clean, and that nobody else has a claim against the property. The title will also be insured, just in case something was missed during the search. This protects both you and your bank.
You will provide a copy of your driver’s license and/or passport as proof of identity.
Your down payment (previously paid and held in escrow) will be transferred to the seller, as well as the balance of the purchase price, most often provided by your lender. While your lender may choose to send a representative to the closing, the funds will be wired to your attorney on the morning of your closing date.
The deed can now be transferred from the seller to you, the buyer, in your name. As soon as the deed is transferred, you own the house. After the closing, the deed is recorded in the office of the Town Clerk by your attorney.
At the conclusion of the closing, the keys to the property are handed to you as you now officially own YOUR NEW HOME and can begin moving in!
That was easy, right? Now the fun really begins… MOVING DAY!!! :-)
If you or somebody else that you know need some help, give Carissa & Douglas a call.