First-time home buyers search high and low for real estate closing advice. The real estate closing process generates unfathomable stress, especially for first-time home buyers.
Prospective home Buyers await news regarding appraisals, property inspections, and title searches. With so many moving pieces, it is challenging to maintain constant vigilance over the process.
Plymouth Title Guaranty Corporation seeks to mitigate that. Some key pieces of advice (and information) help ease home buyers through their first foray in the world of property ownership.
Real Estate Closing Advice 101
The real estate closing process involves a lot of moving parts. Keeping track of so many aspects quickly creates stress.
Here is some helpful real estate closing advice for making that final push towards becoming a homeowner.
Real Estate Closing Advice Regarding the Process Itself
The closing process starts once the seller accepts an offer on the home. The real estate closing process ends once the lender fully funds the loan. This allows the transaction to wrap up, and the home buyer receives their keys.
In the time between agreeing on a cost and completing the transaction, a few things occur. These include inspections, appraisals, renegotiations. In addition, both sides need to be comfortable with the closing costs.
However, this could lead to delays for repairs, maintenance, renegotiation of the price, and more.
The Appraisal Process
During the real estate closing process, property appraisals and inspections dictate whether the closing occurs at the originally designated end date. Home appraisals help lenders understand the property’s value.
Both of these are to help your lender understand if the value of the home is equal to or higher than the agreed upon price and to ensure that the home does not require necessary repairs or upgrades to meet the standard.
Know the Closing Costs
Our single greatest piece of real estate closing advice is to know the closing costs. Many first-time home buyers catch themselves off-guard by what is mandated.
Even those who know the steps may not know all of the costs involved. Closing costs entail the following:
- Appraisal Fee—The cost of hiring a professional evaluator.
- Credit Report Fee—Payment to obtain copies of credit reports for the borrower.
- Origination Fee—A fee paid to your lender for processing the loan.
- Title Search Fee—The cost of running a title search.
- Title Insurance—A payment made to obtain insurance in case of damages caused by a title issue.
- Underwriting Fee—A fee to cover processing and administrative costs.
Picking a Closing Date
As a final piece of real estate closing advice, decide on a closing date that benefits you. Potential first-time home buyers consider a variety of factors when selecting their closing date.
Consider when other payments are due. Many first-time home buyers transition from renting property to owning property. For those paying rent on an apartment, schedule a closing date that saves you from paying another full month of rent prior to moving. Please note: This is not always possible due to rental lease commitments.
Also, understand when utilities are connected. This generally includes water, heat, gas, electricity, and internet. Speak with your utilities companies to know when to expect a transfer.
Finally, scout an ideal time of month for closing. When closing, the time of month (early, middle, or late), largely affects closing speed. It may also dictate the interest you may pay on closing costs.
For further information on real estate closings, get in touch with one of the title and escrow specialists at Plymouth Title Guaranty Corporation.
Please note: The safety of our staff and clients is our highest priority. Effective immediately, Plymouth Title Guaranty Corp. will be taking the following precautions to limit the spread of the COVID-19 virus:
All purchase transactions need to take place at a Plymouth Title Guaranty Corp. closing office.
- If a party to the closing is not feeling well, please contact your closer before the closing so appropriate precautions can be taken.
- We ask visitors to utilize the restroom in our building upon arrival to thoroughly wash their hands before entering our office.
- Only individuals required to sign and/or deliver documents at closings will be allowed in our office. Specifically, closings will be limited to borrower(s), seller(s), agents, and lenders.
- All pens used in the closing will be given to the client after use.
- All closing rooms will be cleaned and disinfected in-between each closing.
- Those picking up checks at our office will be instructed to call our main line and request to speak to a staff member who will plan for delivery to the lobby or parking lot of our office.
- All staff will refrain from shaking hands before or after closings and ask clients to do the same.
Please be advised that our staffing may be impacted during this unprecedented event. While we are committed to continuing to provide outstanding service, we ask for your patience in the face of this pandemic.