Steps Between Signing and Closing on a Home: What Every Buyer Needs to Know
Closing on your dream home isn’t the finish line just yet. After signing the purchase agreement, several critical steps remain before you can officially call it yours.
What Happens After You Sign the Purchase Agreement?
Once the purchase agreement is signed, you enter escrow—a third-party arrangement that safeguards both buyer and seller. Escrow holds payments and documents until all agreed-upon terms are met, ensuring a smooth transaction. Your REALTOR® will guide you through this process.
What’s in the Escrow Account?
Buyers deposit earnest money—a good-faith payment applied toward closing costs or the down payment. The seller’s documents, like the property title, are also kept in escrow.
Pre-Closing Checklist
- Mortgage Approval:
If financing your home, your lender must approve your mortgage before closing. This includes a home appraisal and a title search to confirm ownership and property value. - Required Insurance:
- Homeowners Insurance: Covers damages, belongings, or injuries on the property.
- Additional Insurance: Depending on circumstances, you might need flood, title, or mortgage insurance.
- Appraisal Contingency:
An appraisal ensures the home’s value matches the agreed purchase price. If not, it could impact your mortgage approval or require renegotiation. - Home Inspection:
While not mandatory, an inspection can uncover hidden issues, saving you from costly surprises. Inspections might include radon, lead paint, or structural evaluations.
How Long Does It Take?
The time between signing and closing depends on factors like inspection schedules and mortgage processing. On average, this process takes several weeks.
What Happens on Closing Day?
Closing involves signing documents, paying fees, and exchanging keys. Costs may include down payments, loan fees, inspection charges, and insurance premiums. Once completed, you’re ready to move into your new home!
Navigating the path to homeownership can be complex, but you don’t have to do it alone. As an award-winning REALTOR® in the area, I’m here to guide you every step of the way—ensuring a smooth transaction and your ultimate satisfaction.
Let’s make your dream home a reality! Contact me today to get started, and don’t forget to follow me for more expert tips and insights.
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