Closing Escrow Isn't Always Easy

Closing day is a meeting where final documents are signed, and ownership of the home is officially transferred to you.

During the closing period, follow these key tips to keep your journey to closing day moving as seamlessly as possible:

Get pre-approved

Getting pre-approved doesn’t just show the seller you’re a serious buyer, it can also help expedite your loan approval process. You'll have a sense of what you can afford. This can help you avoid financing issues that delay or stop the closing process because the sale of the home depends on you securing a loan.

Be prepared for inspection surprises

Getting a home inspection is a crucial part of the closing process. Major repairs that come up during the inspection, such as plumbing issues or termites, should be addressed before closing day. If contingencies are not met before the end of the closing period, the closing date could be delayed or the transaction can be canceled.

Secure your closing funds

The upfront costs of homeownership extend beyond your down payment. Closing costs, also called settlement fees, are expenses that you will pay to finalize your mortgage. They include insurance, title fees, and taxes. Closing costs vary, but you can expect to pay 2-5% of the loan amount. Your lender will outline your closing costs in your loan estimate and ensure that you are prepared for any additional fees. Don’t forget to compare your loan estimate to your closing disclosure, which you will get three days prior to closing, to make sure there are no changes.

Complete a title search

Before the property is legally transferred to you, the home must have a “clean title”. This simply means the home title has been cleared of any judgments, liens, or bankruptcies. It also ensures that the person representing themselves as the Seller can legally sell you that property.

Request a final walkthrough

You should request a formal walkthrough of the home 24 hours before closing. You will want to double-check that all the agreed upon repairs have been completed, the seller has completely vacated the property, and that it has been cleaned.

Work with a trusted team

Buying a home is a complex process, that is why it’s important to assemble a team of experts to guide you. Before signing your closing documents, your lender will work with you to make sure you understand the costs and terms of your loan. At the closing meeting, you will be joined by your real estate agent and the lender virtually (due to COVID19 protocol), and a notary. Don’t hesitate to ask questions, it’s our job to advise and protect you.

Prepare for pandemic closing protocols

Closing on a home has looked a bit different during COVD-19. California requires in-person notarization. A mobile notary will come to you to notarize the documents while COVID-19 protocol is adhered to during the process. Your real estate agent and your lender will join you, virtually, to answer any questions you may have during this process.

If you’re not sure what to expect, talk to me about how COVID-19 has affected the home buying processes in your area.

Once the closing day arrives, it customarily will not take more than 24 hours after you sign off on the final paperwork to have the deed and the keys to the home legally transferred to you.