It’s expected that shopping for a home can take some time, but many homeowners don't plan for the closing process. The closing proceedings involve the exchanging of titles, documents, and money to secure the deal for both the buyer and the seller. It's an arduous process but a necessary one designed to protect the sale of the home. This final step requires some refinement if you don't want to get stuck in a back and forth between you and the seller. There are a few tips we have to help you make the closing process smoother.
Get Pre-Approved for a Mortgage
Unless you are buying a property in cash, more than likely you will need to find a mortgage lender. While it's not legally required to have one in place before you start looking for homes, it will make the closing process go by quicker. Pre-approval makes you attractive to a seller and shows you have substantial financial backing. Additionally, you'll get locked into an attractive rate on your loan that should be unaffected by the market.
Arrange a Home Inspection
Home inspections are another part of the closing process that is not legally required but helps smooth out the closing process. By design, the evaluation will confirm the home you are purchasing is not riddled with structural flaws that will become costly down the road. If there is damage or large sums of money required to make the home habitable, finding out in advance can help you walk away or negotiate a fairer price or make it possible to include as a contingency in your purchase agreement.
Escrow is a third party involved in the purchase of a home that remains neutral throughout the process. The purpose is to hold the money and all documents included in the deal so neither the buyer or seller loses out financially. If you want to make the closing process more manageable, consider working with a title company that offers escrow services.
Work with a Trusted Title Company
Lenders will want to protect their investment by having buyers take out title insurance. Title insurance is a one-time fee paid to cover the buyer and lender in the instance a problem surfaces and challenges the rights to the property. Before this becomes an issue, find a trusted title company who will conduct a thorough examination of the property and help you address any complications for a smoother closing process.
Find a Real Estate Attorney
Finding legal representation is optional but has immense benefits to buyers and sellers when they are closing on a property. Real estate agents will know legalities, but they can only do so much in terms of advice. Hiring a real estate attorney provides you with concise information about the contract in front of you. They can review the contract, advise on legal matters, and inform you whether or not you're getting a good deal.
Negotiate Your Closing Costs
Another avenue where a real estate attorney is helpful is working with you in negotiations. While you work alongside different contractors and companies to close on your new home, some entities might try to stuff hidden fees into their contracts. Sometimes homeowners will find charges for appraisal reviews, administrative filing, processing and settlement fees. Your real estate attorney can ensure you are getting the most from your closing by reviewing each contract you are signing.
Contingencies are stated in purchase agreements and are required to be removed in writing by the dates outlined. These contingencies can be the seller disclosing known problems, the identification of structural issues from a home inspection, securing an interest rate, or having the seller complete agreed upon repairs. Review all contingencies with your lawyer before you close the deal.
At Rochford Law & Real Estate, we have a reputation for attention to detail and delivering successful results in real estate transactions. If you are looking for a trusted Nashville real estate attorney, visit our website for a free, no-risk consultation.