The Closing: What You’ll Need to Complete a Real Estate Deal
By the time you get to the closing, you’ve already done a considerable amount of work. You’ve listed your own home or notified your landlord of your departure; you’ve obtained a real estate agent and begun the search for your dream house; you’ve found that house and made a bid, which has been accepted; and you’ve readied yourself to make the move into a brand new (for you at least) home. So it would be nice to think that all of the work aside from packing and unpacking is behind you, but it isn’t. There are still some things you’ll have to do to prepare for the closing. And while they may seem like a hassle, they are absolutely necessary and the only way that dream home will become your home.
The first things you’ll undoubtedly need are a check and proof of insurance. The check will be for the down payment on the house and for the closing fees. You should be able to determine what the total will be before the meeting, if not to the exact number within a legitimate range. Talk to your lender to obtain that number, and always figure in a little bit more, for any additional costs you may not foresee. The proof of insurance will prove you have insurance on your home to cover fire or a similar hazard. You’ll have to have a receipt for one full year, so make sure you purchase that well in advance of your closing.
The next two things you need to remember are not so much items you must have but tasks you must complete: a property survey and a title search. The property survey is required by the lending institution and looks at the insurability of your property. This will mark the boundaries of your property and give you an idea of what, if anything, you can construct in the future, such as driveways, sheds and fencing. A title search is a look into the property’s history to make sure there are no liens, encumbrances or taxes on it. The search should go back sixty years and alert you to any unknown problems.
Even if the title search comes up with nothing, you’ll want to obtain title insurance for full protection. You have two forms you can obtain. The first is lender’s title insurance and is generally required by the lending institution, as it is written for the amount of the mortgage in case there are title defects. The second form is beneficial for when the mortgage is paid off. Written fort he price of the house, it protects you and enables you to maintain that protection for as long as you or your heirs own the home.
If you choose to obtain title insurance, the fee will be paid for at the closing and only then. That is where the extra padding you set aside for your closing costs comes in handy; you won’t find yourself facing unexpected fees and worrying that you don’t have enough in your bank account.
Once you’ve secured all necessary documents and you know you have the necessary funds in your bank account, you can walk into the closing with confidence, ready to seal the deal, put the ink on the final papers and walk out of the office with the keys to your house - your new house where you will spend years to come creating a home.
By the time you get to the closing, you’ve already done a considerable amount of work. You’ve listed your own home or notified your landlord of your departure; you’ve obtained a real estate agent and begun the search for your dream house; you’ve found that house and made a bid, which has been accepted; and you’ve readied yourself to make the move into a brand new (for you at least) home.
Joe Cline writes articles for Austin Texas lofts. Other articles written by the author related to Pflugerville real estate and Rollingwood Texas real estate can be found on the net.
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