No matter if you're buying your first home or have already been through five condominiums, buying a property that you're going to be living in is an emotional experience. But, real estate agents will tell you that it is not smart to get too attached to a home until you have completely closed the deal. If you're in the process of submitting an offer on the house of your dreams then you might be wondering what it really takes to close the deal on a home. Here are some of the basics:
The most obvious thing that you will need is an agreement between the buyers and the sellers on the condition of the sale. This will include how much you're paying for that listing and the terms that were agreed upon between the two parties. The sale might be conditional on you receiving the proper financing from the bank or it could be based on the completion of a successful home inspection that does not include any surprises. You should make sure that you understand all of your contracts with the sellers before you go into closing the deal.
You will want to get all of the legal matters taken care of. You might want to hire a real estate lawyer to help you with the process of signing all of the papers for that place among local real estate listings and will want to do a title search to obtain the title insurance. You will want to make sure that there are not going to be any surprises along the way.
Going into the closing stage will mean opening escrow. This is an account that is held be a third party where the money for the home sale will go while all of the paperwork is being done and both sides are filling their end of the deal. This shows the sellers of that property that you have already worked out your mortgage and can pay for the property and gives the buyers some security that the sellers will not take off with their money will some things have still not been taken care of. Most people will start by putting their down payment into escrow.
Lastly, you will want to make sure both sides understand who is paying for all of the closing costs. There are many fees to different professionals that need to be paid before you can get the keys to your new home and you will want to make sure that none of them are forgotten. It is traditional for the buyers to pay for the bulk of the closing costs for their condo or home but this is something that could be worked into the final contracts for the sellers to pay.