Selling a house can be a long and taxing process, especially if you are selling it on your own. There are numerous steps and procedural bureaucracies involved in the process.
The house closing process begins when you get a satisfactory offer and ends when you sign the papers to release the house to the new owner. But between the moment you get an acceptable offer and sign the documents to release the house, several steps must be followed.
Since this is a complex process, most of these tasks should be performed by a closing lawyer or real estate agent. Working with a buyer like Trusted House Buyers lets us handle all of the stress and difficulties that come with selling your home, not to mention covering all closing costs throughout the process. All the same, it is important to understand what happens in advance so that you have an idea of what to expect.
Continue reading because this article describes the steps involved in closing a house sale.
What Happens At Closing?
When you are closing the sale of your house, you will meet with several legal representatives to sign the necessary documents and receive payments. The closing formality will probably take place at the office of the title company, closing attorney, or the lender. You are supposed to bring any relevant documents, including your driver’s license or passport, and receipts of any payments you have received throughout the home selling process.
At the closing, you will be required to sign documents declaring that you have sold the house to the buyer. These documents include the loan payoff statement, which shows what your loan payoff will be at closing; a mechanic liens affidavit, which swears that there are no liens against the house by a subcontractor, and the statement of closing costs, which lists all the various fees and costs involved with the sale.
On the buyer’s side, they will be expected to review and sign all the necessary documents, including mortgage paperwork (if applicable).
You will also be required to sign the TILA-RESPA integrated disclosure documents. This is a government form meant to help itemize all fees involved. You also have to produce your homeowner’s insurance and inspection documents.
Make sure you read and understand all the paperwork before signing. Although some of these documents have complex legal jargon, you should try to read all of it yourself. And if you do not understand some of the terms used in the documents, ask your closing lawyer or real estate agent for interpretation.
Don’t feel pressured by the people waiting for you to sign the documents, such as the notary and mortgage lender, because the fine print might cause problems in the future. In particular, make sure that all the agreed terms are clearly mentioned in the paperwork.
Since there are numerous documents that you have to sign, it would be prudent to ask the closing lawyer or real estate agent to give you copies of the documents a few days before the closing meeting so you have enough time to go through them and correct any errors.
Payments Involved In The Closing Process
As the seller, you are often required to pay the real estate agent commissions on both sides of the transaction. This commission is usually a percentage of the total selling price to each agent. If there is just one real estate agent representing both sides of the transaction, they will get a full commission.
It’s important to know that you can avoid paying the agent commission by working with a real estate company like Trusted House Buyers because we don’t charge agent commissions. This will guarantee you more cash from the sale.
You will also be expected to pay the title insurance at the closing. Before closing, the title company will do a title search to verify ownership and determine if there are liens that need to be paid at closing to clear the title. This is important because the title policy protects the mortgage lender against any unforeseen ownership claims.
Besides those costs, you will also be required to pay for any repairs and outstanding liens against the house. These payments will need to be made before the closing date. This only applies if you’re looking to make a traditional market sale, and not selling to a home buyer that buys properties as-is.
Before you hand over the house to the buyer, make sure that the credit and debit balances are correct. This is important because the escrow company will pay off any existing liens on the house, remaining mortgage, real estate commissions, and any property taxes you owed until the closing date. In summary, the house closing process is quite complex and tedious. You can avoid this hassle by working with a reliable and experienced real estate company like Trusted House Buyers, because we are committed to making the house closing process in San Diego County fast, easy, and straightforward. We always will answer any questions that you have and have the ability to move at your pace.
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