Once a home goes under contract, the goal for both buyers and sellers is to prepare for closing day. Closing on your property could take two weeks or two months to finalize depending on a variety of the results of home inspections, whether the purchase is made with a cash deal, or if there is a loan involved.
Below we explain what happens on your closing date along with tips on how both buyers and sellers can prepare for the end of their real estate transaction.
What Happens on Closing Day?
What happens on the closing day can be different for buyers and sellers.
For buyers, it is highly recommended to do a final walkthrough before you go to closing. This is especially recommended for buyers who may be purchasing a home sight-unseen. You will want to make sure the property is in the same condition as the last time you viewed it.
Walk-throughs are typically scheduled for the day of closing, so they won’t be as detailed as your initial home inspection. You can usually allot 30 minutes to an hour to thoroughly check the property. Afterward, buyers will go to the attorney’s office to sign papers.
Sellers may go to the property the same day as closing. Otherwise, they will have signed their papers beforehand and will be finished with the home selling process.
Once all papers are signed, funds are transferred, and the deed is recorded, the property officially belongs to the buyers.
Who is Involved in Closing on a Property?
You can expect a couple of different entities to be involved in the closing of a property. The following are the most common:
- The buyer(s) and their real estate agent
- The Seller(s) and their real estate agent
- Closing attorney
If there is a loan, a lender may not be there but they are certainly involved
How To Prepare For Your Closing Date
Making it to closing is the final and most important step of any real estate transaction. Many of these steps will assist you in the due diligence process. Buyers and sellers both need to know how to prepare for their closing dates to ensure a seamless experience.
3 important things to remember before your appointment include:
- Going over the Closing Disclosure Statement and making sure it is correct
- Verifying the amount of funds and ensuring they are in the correct form for the settlement table
- Bringing a valid form of identification such as a driver’s license or government-issued ID photo
Buyers will need to make sure:
- Their property insurance is purchased and active
- Utility companies are aware of the property being under new ownership as of that day
Sellers need to bring all keys including garage remotes, mailbox keys, and gate keys.
Hopefully, this information will help take a little stress off of the overwhelming process of home buying and selling. Once the papers are signed and the house officially belongs to the new owners, everyone can take a deep breath and celebrate.