Closing on a piece of real estate can be an exciting, but lengthy process. There are a lot of important steps to take that can have long-term ramifications. And if any of these important steps either don’t go through correctly or don’t go through at all, the deal can fall apart.
This is the main fear of anybody involved in buying a piece of real estate. Inspections cost money. Finding and working toward securing a piece of real estate takes time. Starting from scratch can be a big loss and be disheartening to a potential buyer.
Proper care and preparation — along with a title and closing company — can help make this process a lot easier. Purchasing real estate doesn’t need to be confusing and difficult.
Here are 6 things you can do to ensure a smooth real estate closing process:
Lock in Your Interest Rate
Secure Funds in Approved Form
Keep Lines of Communication Open for Representation
Review Any Inspection Documents
Give Yourself Time to Make Adjustments
Put Together a Closing Checklist
1. Lock in Your Interest Rate
Your interest rate is likely to have a huge impact on the amount of money you pay over time. Most of us don’t have the capital on hand to outright buy a piece of property. This leads many to secure a large loan in order to cover the cost of the house.
These interest rates fluctuate. And even though 1% might seem like a small amount, a fluctuation of this size can mean the difference of a lot of money.
Lenders allow those looking to purchase real estate to lock in an interest rate for a certain amount of time. This protects you from the rate spiking before closing day, as long as you close within a predetermined amount of time.
2. Secure Funds in Approved Form
The seller will have certain stipulations regarding the manner in which they would like to receive payment. This is frequently in the form of a wire transfer or a cashier’s check. These will need to be procured prior to meeting with the title and closing company to sign the papers and complete the sale.
Make an appointment at your bank beforehand — probably earlier on your closing day — to make sure these funds are available and ready to be transferred.
3. Keep Lines of Communication Open for Representation
Your real estate agent, attorney, or title and closing company should be able to reach the representatives of the other party in the transaction whenever they need. There are a lot of moving parts in these transactions that will need to be discussed.
It is essential for these lines of communication to be open to discuss any necessary procedures or forms that need to be provided in order to move forward in the process.
4. Review Any Inspection Documents
Home inspections are a standard requirement in a residential real estate transaction. Termite and other pest inspections may be done as well. These inspections will give detailed accounts of the state of the property and what can be done prior to closing.
Both parties to the transaction should review these documents. The information contained within is important and will inform future decisions.
5. Give Yourself Time to Make Adjustments
Take some time off from work to make sure you have all of your necessities sorted out. This could be a day or two in the weeks leading up to closing day, as well as on the closing day itself.
The findings in the inspections could necessitate changes to the purchase agreement. Documents will need to be altered and reviewed. Simple typos can be a big problem later on, so it’s best to give these the proper attention early.
6. Don’t Be Afraid to Ask Questions
There’s a good chance you aren’t an expert on purchasing real estate. This is why you’re working with a real estate agent and a title and closing company. There are going to be terms and processes you don’t understand.
Asking questions helps you feel more comfortable throughout the process. It also helps the professionals that are helping you to double check their work.
Work With an Experienced Title and Closing Company in Nashville
Rochford Law & Real Estate Title has the knowledge of an attorney and the experience of a title and closing company. We have helped countless people in the greater Nashville area to make it through closing day as smoothly as possible.