What Is Involved in the Closing Process?

What Is Involved in the Closing Process?

As everybody knows, the settlement is the final step in the closing process, but it comes after a few other steps that must be completed before the seller and buyer can complete the transaction.

A final buyer walk-through will trigger the closing process. Final walk-throughs are conducted to ensure that any agreed-upon repairs have been made and to check the property's condition. This typically happens within five days of closing. It is important that the seller provide the buyer with all operating instructions and manuals when the house is move-in ready.

As part of the three-day review period, the lender gives the buyer a final loan estimate with the closing loan fees and the closing disclosure.

A title or escrow company will typically be where the closing takes place. Which state the transaction is occurring in will determine which parties will attend the closing. There may also be an escrow officer, a loan officer, a listing agent, a selling agent, and a real estate attorney attending the meeting. In states that allow electronic closings, involved parties will execute required documents remotely and digitally.

The buyer must present funds for closing costs and the down payment. This is typically 3% to 5% of the loan amount for loan fees plus the down payment amount. In the case of a seller, the net proceeds will reflect deductions for a loan payoff, real estate commissions, escrow and title costs, and prorated taxes and fees.

For in-person closings, buyers need to bring photo IDs and proof of closing funds. The seller will bring all keys and remotes to the table. There should be some communication between the buyer and seller regarding the transfer of utilities and any services that have been agreed upon.

A successful closing is the goal of every transaction. Please contact 54 Realty for assistance with any buying or selling questions!