As a buyer of a new home, first things first, congratulations! Whether buying your first home, moving to better suit your needs, or buying another property for investment or enjoyment, this is an exciting time. If you are working with an agent, your agent will provide you with the information you need. If you are not working with an agent, or you are looking for some general guidance, here is an overview. After you have agreed upon and signed the terms of a real estate contract, you will begin working toward closing the transaction. Most real estate purchases involve borrowing money to finance the transaction. Contacting your lender early and going through their process is important for keeping the closing process moving on time. Most of what lenders do and require is beyond the control or input of your agent and the closing attorney and can often take longer than you think, so start early. Let the lender know what attorney you are using to close your loan. Inspecting and appraising the property:Your lender and/or you will likely want to have the property you are purchasing appraised to make sure the value is in line with the purchase price and inspected for any hidden issues. There are general inspections that look for major problems with the home and pest inspections that look for termites and other pest that can harm your home. Work with a reputable inspector to protect your investment. These appraisals and inspection reports should be provided to the closing attorney. Speaking of protecting your investment: Title insurance is offered at the closing through the closing attorney and a title insurance company.Your closing attorney will also likely be an agent to sell title insurance for a title company. Your lender will require you to purchase a lender’s title insurance policy to protect their interest, and you have the option of purchasing your own title policy to protect your interests as well. Title insurance protects you and your investment in case an issue should ever come up with ownership or liens placed on the property that you were not aware of when you purchased to property. A lender policy protects the lender’s security interest in the property, but not your interest in your equity or ownership in the property. Title insurance is an inexpensive way to protect what is likely the biggest purchase in most people’s lives. Additional protection some buyers purchase is a home warranty. Home warranty policies can vary widely in price and range of protection for things that may break down in your home. Most agents can refer a good one to you and discuss the benefits of purchasing a warranty. Find out from your bank, agent, or closing attorney how much money you will need to bring to the closing and how the funds should be presented. Wires and certified funds are going to be preferred or required most times instead of cash or a personal check. Your bank or closing attorney will provide you an initial estimate of the fees associated with the entire transaction, including the loan, closing, and inspection fees, as well as who is paying the fees. You should review this and discuss with your agent, lender, or closing attorney if you have any questions. Mark off your calendar for the closing date you agree to with the seller, and get ready!

As a seller of property, you have worked hard to make your property marketable, and now you are ready to finalize the sale. After the contract to sell your property is signed, you can prepare for the closing. If you owe money on your property, you will need a payoff balance from your lender. Once you have decided on a closing date, you can request from your lender an amount to payoff the loan that is good through the closing date. If you are unsure, selecting a later date for the closing can keep you from having to pay any additional small amounts to satisfy your loan. If the closing date is earlier and you have overpaid out of the closing proceeds, your lender will refund you the overage. Contact your closing attorney with payoff and disbursement instructions. If you or your bank wish to have the sale proceeds wired somewhere or a check issued, these instructions need to be conveyed in a direct and secure way to the closing attorney. Closing attorneys are careful to not allow funds to be wired or disbursed to people who are not authorized to receive them, but you play a big part in making sure funds get to where they need to go. Work with the buyer and agents involved to make sure they have access to the home to have inspections and appraisals done needed to close the sale. Some real estate transactions, especially those involving investment property, involve tax consequences and advantages that people need to discuss with their accountant or outside attorney. A “1031 exchange” is an example of this. If this is a situation you intend to pursue, the IRS and other entities have strict guidelines and timing requirements that you should discuss with your accountant or outside counsel prior to closing. Set an agreed upon date on your calendar and get ready!While most sellers attend the closing to finalize the transaction, many times sellers of property are not able to attend the closing in-person because they have moved away. This is allowable, but time needs to be included in the closing process for closing documents to be mailed, signed and returned prior to closing.

The closing attorney will work with you, your agent, the banks, the other party, and the title insurance company to have everything ready for title to change hands at the closing. A title search is almost always requested and required, which will be provided by the attorney. This will ensure that the seller has the ability to legally transfer title to the property without any questions about anyone else having an ownership interest in the property. This will also allow the title insurance company to insure the title for the lender and the buyer against issues that could potentially arise after the closing. You will work with your lender, agent, and inspection and appraisal companies to make sure everyone is satisfied that there are no surprise issues either with the loan, the paperwork, the value of the property, or the condition of the property. Any title issues that may come up will be addressed by the closing attorney with the parties. The closing attorney will determine what taxes and possible home owner’s association (HOA) fees should be allocated to each party depending on when during the year the closing occurs. Once everything is in place, we are ready to close the transaction. You may also perform a final walkthrough of the home to make sure all issues agreed upon have been resolved.

The closing process will take place at the closing agent’s office. In our case, it is here at our law office. If both parties are in town, each will come to the conference room to sign the appropriate paperwork. If not, the seller has signed all paperwork they need to sign in advance. If you are bringing certified funds to buy the property, you will bring it with you. At the closing, all relevant information will be presented to you.The costs associated with everything will be presented so you will know how much you are paying and can compare this with the estimate provided to you earlier. If you are selling your property, you will sign the deed prepared that legally transfers title to the property to the buyer, along with a closing affidavit. If you are buying the property, you will sign relevant paperwork to secure the loan and grant a mortgage to your lender for the property. You will also receive copies of your appraisal, inspection reports, any HOA covenants, and the deed to your new property. The closing attorney will file the deed and mortgage with the county probate office and give instructions on claiming homestead exemption on the property. The closing attorney will issue payment to everyone who provided services for the transaction, including the agents, along with payment to payoff the seller’s mortgage loan and any additional proceeds to the seller. The buyer is presented with the keys to their new home! IF YOU ARE CLOSING WITH US, we follow the process above, but there is a little bit more. We want to celebrate this day with you as a home buyer. Upon arriving, you will likely smell cookies baking in the oven, fresh for every closing. If you need to bring your kids, they can stay engaged with all the goodies and treasures in our dedicated kids drawer. We will have a photo of your home from the listing website, and after you and your agent take a photo in front of our greenscreen, you will leave with a digital photo of you and your agent in front of your new home (along with our fun props you are welcome to use as well) to share with your family and friends. You will take home with you a little something on us to celebrate, be it a candle or a bottle of champagne or cider. You will leave with new friends and a trusted resource for any legal issues that ever arise for you and your family.