You survived open houses and your house recently went under contract. Now what?
The closing process may seem daunting at first, but you can relax. Keep reading for tips to help you prepare for a smooth house closing.
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What Is a House Closing?
When you sell your home, several activities occur after executing a contract. They include everything detailed in the sales contract, like gathering funds and documentation. House closing is the time used to complete those activities.
The closing date is the day of settlement. It’s when final ownership transfers to the buyer. Your mortgage closing is the last step to handing over the keys.
Closing Process for Sellers
Closings requiring buyer financing may take 30-60 days. Some people offer to buy houses for cash, which could reduce the closing period to as little as 1-2 weeks.
Going under contract on your home is exciting. But items still remain on the closing process checklist.
The closing agent performs a title search to ensure the transfer of a clean title. This includes verifying you as the owner on record and determining if any judgments or claims exist on the property. Depending on the agent’s finding, you may need to resolve issues before the process continues.
If your buyer requires a mortgage loan to buy your property, the bank conducts an appraisal. This allows the financier to assess the market value of your home. They base that value on features in the home and comparable sales in the area.
A lender won’t provide funding of any amount above their appraisal.
If the lender appraisal exceeds the sales price, there’s no conversation needed. But if the sales price exceeds the appraisal, you can challenge the appraisal or reduce the price. If you lose the challenge and elect not to reduce the price, the buyer is not obligated to fulfill the contract.
Cash buyers make this process easier because they don’t need buyer qualifications.
Buyers can request a home inspection shortly after your home goes under contract. The inspection uncovers any safety concerns or quality defects.
If you’re aware of repairs needed in the home, discuss them with your agent. It could work best for you to make all major repairs in advance of the inspection. Depending on the inspection report, buyers may request repairs or a price reduction.
Buyers conduct a final walk-through immediately before closing. This gives them time to ensure no major changes in the condition of the house. It also allows them to confirm repairs and removal of the seller’s personal property.
What Do Sellers Need for a Closing?
Whether settling on closing day or in advance, there’s a limited list of what to bring to closing. Most important are the keys to the house and your government-issued identification. But if your closing agent requests more documentation, make certain to bring that too.
Happy Closing Day
Don’t feel stressed during the house closing process. Keep handy this list of what to expect and get your home and yourself prepared. There’s no reason you shouldn’t have a happy closing day.
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