Navigating the real estate closing process can be a daunting task for both buyers and sellers. However, having a clear understanding of the timeline can make the experience much smoother. In this article, we present a simplified timeline that outlines the key steps involved in a typical process providing a valuable resource for those embarking on this important journey. So, you want a general idea about the process. It’s a good thing that you’ve found this guide.
General Timeline for Real Estate Closing
Offer acceptance (1-2 days):
Once a buyer selects a house, the seller reviews and accepts the buyer’s offer, leading to the signing of the purchase agreement by both parties.
Earnest money deposit (1-3 days):
The buyer submits an earnest money deposit, typically held in an escrow account, to show their commitment to the transaction.
Home inspection (5-7 days):
The buyer arranges for a professional home inspection, which usually takes a few hours, to assess the property’s condition and pinpoint any potential issues or repairs needed.
Appraisal (7-10 days):
The lender orders an appraisal to determine the fair market value of the property. This can take a week or so to complete and is crucial for securing a mortgage loan.
Loan application (1-2 weeks):
The buyer applies for a mortgage loan from a lender, providing necessary documentation like income verification and credit history. The loan application process can take around 1-2 weeks, depending on the lender’s efficiency and the complexity of the buyer’s financial situation.
Title search and insurance (1-2 weeks):
A title company conducts a thorough search to ensure the property’s title is clear from any liens or ownership disputes. Obtaining title insurance, which protects against unforeseen title issues, typically occurs during this stage.
Loan approval and commitment (2-4 weeks):
The lender reviews the buyer’s loan application, including the appraisal and title report, and grants final approval. This commitment outlines the loan terms and conditions. The duration can vary based on the lender’s processes and workload.
Closing disclosure review (3-5 days):
The buyer receives the Closing Disclosure, a document providing a detailed breakdown of closing costs, loan terms, and monthly payments. The buyer reviews this document for accuracy, typically taking a few days.
Final walkthrough (1 day):
Shortly before the closing date, the buyer conducts a final walkthrough of the property to ensure it is in the agreed-upon condition. This typically takes a few hours.
Closing day (1 day):
The buyer, seller, and their respective agents or attorneys gather to sign all necessary documents, including the transfer of funds, deed, and other legal paperwork. The closing process usually takes a few hours.
Recording and funding (1-2 days):
After the closing, the deed and mortgage documents are recorded with the appropriate government office, and the lender funds the loan. This step officially transfers ownership to the buyer and typically takes 1-2 business days.
Possession:
The buyer receives the keys and officially takes possession of the property, marking the completion of this process. The timing of possession is typically agreed upon during the closing process, often occurring immediately or shortly after closing.
It’s important to note that the durations mentioned are estimates and can vary depending on factors. Every case is different and the time estimates are given to give you a general idea only.
Closing process of Real Estate
The process for closing real estate is the final stage of a property transaction where ownership of the property is officially transferred from the seller to the buyer.
It involves several steps, including offer acceptance, earnest money deposit, home inspection, appraisal, loan application, title search and insurance, loan approval and commitment, closing disclosure review, final walkthrough, closing day, recording and funding, and finally, the buyer taking possession of the property.
Real Estate Closing Costs Estimates:
Closing costs are expenses incurred during the real estate closing process. These costs will vary depending on factors such as the property’s location, the loan amount, and the specific terms of the transaction.
Common closing costs include lender fees, appraisal fees, title search and insurance fees, attorney fees, recording fees, and prepaid expenses like property taxes and homeowners insurance. Buyers and sellers need to obtain estimates of these costs in advance to plan their finances accordingly.
Real Estate Attorney Fees for Closing:
Engaging a real estate attorney is a common practice during the closing process to ensure legal compliance and protect the interests of the buyer or seller. Real estate attorney fees for closing can vary depending on factors such as the complexity of the transaction, the attorney’s experience, and the local market.
These fees typically cover services such as document review, contract negotiation, title search, attending the closing, and providing legal advice and guidance throughout the process.
What are Some Real Estate Closing Documents:
It involves a significant amount of paperwork.
Some essential documents typically encountered during the closing process include the purchase agreement.
· The deed transferring ownership
· The promissory note detailing the terms of the loan
· The mortgage or deed of trust securing the loan
· The closing disclosure that provides a breakdown of the costs
· The title insurance policy
· The affidavit of title, and various affidavits disclosures
· Forms required by local and state regulations
These documents play a crucial role in legally finalizing the real estate transaction.
Do You Want to Sell or Buy a Home in Massachusetts?
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We are Team Garner Realty Group – a team of real estate professionals who have a passion for helping people find their new homes. We’re a savvy local realty group that knows the market inside and out, you can count on us! Call us at 781 829 4301.