What happens on the day of my property closing?

Purchasing a home is an exciting milestone, but the closing process can often feel overwhelming, especially for first-time buyers. Understanding what to expect and how to prepare can make the experience much smoother. Here’s what you need to know about the home closing process, including the importance of working with a Bucks County real estate lawyer.

Understanding the Home Closing Process

The home closing process is the final step in buying a property. It’s when the title of the property is transferred from the seller to the buyer, and all financial transactions are completed. This process involves several steps, and being well-prepared can help avoid any last-minute surprises.

1. Review the Home Purchase Agreement

The purchase agreement outlines all the terms and conditions of the sale, including the purchase price, closing date, contingencies, and any included appliances or fixtures. Before closing, ensure you thoroughly review this document. Any discrepancies or unmet conditions should be addressed before proceeding.

2. Secure Financing

Make sure your mortgage is fully approved before the closing date. This includes completing all necessary paperwork and meeting any conditions set by your lender. A delay in securing financing can push back your closing date.

3. Conduct a Home Inspection

A home inspection is crucial for identifying any potential issues with the property. If the inspection reveals significant problems, you may need to renegotiate the terms of the sale or request repairs. Ensure all agreed-upon repairs are completed before closing.

4. Title Search and Insurance

A title search confirms that the seller has the legal right to sell the property and that there are no liens or encumbrances against it. Title insurance protects you from any future claims or disputes over property ownership. Your real estate lawyer can help ensure a thorough title search and secure appropriate title insurance.

5. Final Walk-Through

Conduct a final walk-through of the property 24 hours before closing. This is your opportunity to ensure that the property is in the same condition as agreed upon and that any negotiated repairs have been completed.

Role of a Real Estate Lawyer During Closing

1. Legal Guidance

A real estate lawyer will review all closing documents, ensuring that everything is in order and that your interests are protected. They can explain complex legal terms and ensure that you fully understand the commitments you are making.

2. Title Examination

Your Bucksc County real estate lawyer will conduct a thorough examination of the property’s title to identify any potential issues. They will ensure that the title is clear and that you will receive a valid and marketable title to the property.

3. Handling Paperwork

The closing process involves a significant amount of paperwork, including the deed, mortgage documents, and closing statement. A real estate lawyer will ensure all documents are accurately prepared and properly executed.

4. Resolving Issues

If any issues arise during the closing process, such as disputes over repairs or problems with the title, your lawyer can help resolve them. They can negotiate on your behalf and ensure that your rights are protected.

5. Disbursement of Funds

Your lawyer will handle the disbursement of funds, ensuring that all parties are paid appropriately and that the transaction is completed smoothly.

Closing Costs

Be prepared for various closing costs, which typically include:

• Loan Origination Fees: Charged by your lender for processing the loan.
• Appraisal Fees: For the property appraisal conducted by a professional appraiser.
• Title Insurance: Protects against future claims to the property.
• Homeowner’s Insurance: Required by lenders to protect your investment.
• Property Taxes: May need to be prorated between the buyer and seller.
• Recording Fees: Charged by the local government to record the new deed.
• Transfer Tax: This is a 1% tax customarily split between the buyer and seller

Your real estate lawyer can review the closing cost statement and ensure that all charges are accurate and fair.

The Closing Day

On the day of closing, you will meet with your real estate lawyer, the seller, and other relevant parties to sign the final documents. Here’s what to expect:

1. Sign Documents

You will sign various documents, including the mortgage note, deed of trust, and closing disclosure. Your real estate lawyer will guide you through each document, ensuring that you understand what you are signing.

2. Pay Closing Costs

Bring a certified or cashier’s check for the closing costs and down payment. Alternatively, you can arrange for a wire transfer. Your lawyer will ensure that all payments are properly allocated.

3. Receive the Keys

Once all documents are signed and funds are disbursed, you will receive the keys to your new home. Congratulations, you are now a homeowner!

After Closing

After the closing, your lawyer will ensure that the deed and mortgage are recorded with the county recorder’s office. They will also confirm that all liens and encumbrances are cleared.

Final Thoughts

The home closing process can be complex, but with the right preparation and professional guidance, it can be a smooth and successful experience. Working with a real estate lawyer can provide the expertise and peace of mind you need during this significant transaction. From reviewing documents to resolving issues, your lawyer will be an invaluable resource in ensuring that your home purchase goes smoothly.