March 27, 2019
What to expect during the closing process from the buyer’s perspective
If you’re about to close on a house, congratulations! The closing process is the last step in the home buying process, though it is a lengthy one, and having background information will better prepare you for what to expect. Overall, your closing date is the day you become the legal owner of your new home. Here are some general questions you may have and what to expect when closing:
What documents do you need to bring?
As a buyer, your Realtor and loan officer should prep you on what to bring, but the items you most likely will need are:
- A cashier’s check for the total amount due, which includes your down payment and closing costs.
- Your checkbook to account for any possible last-minute changes.
- Your attention! Reading and analyzing an abundance of legal documents can be strenuous, so be sure to ask for clarification on anything you don’t understand.
- All documents concerning loans and mortgages.
How long does it take to close on a house?
On average, the closing process on a home takes approximately 41 days, and 32% of transactions encounter some sort of delay before closing. Of these delays, 46% are caused by financing issues. One of the main reasons these delays occur is because buyers take on more credit before their closing date. If you accrue extra debt it will change your credit score, thus leading your lender to adjust your mortgage agreement. Other problems you may run into involve the appraisal, loan, home inspection, walkthrough and loads of paperwork. Having this knowledge on the most common delays during the closing process can assist in speeding up yours.
How much does it cost to close on a house?
Closing costs include a variety of third-party fees and usually the home-inspection bill, appraisal fee, premium for homeowner’s insurance, attorney expenses, credit report changes, etc. On average, you should expect to pay 3-4% of the purchase price of your home in closing fees. For example, if your home costs $200,000, you might pay between $6,000 and $8,000 in closing costs.
These are some general outlines on what the closing process looks like, and when you’re working with an experienced Realtor, they will thoroughly prepare you for all the specifics during closing.