Buying your first home is an important decision, and it can be an overwhelming experience, particularly the closing process. But the question is, "What is the closing process?" 

This post will give you an overview of what it's about and the necessary steps to complete it.

What Is The Closing Process?

Closing is the last process before receiving the keys to your new house. This is a real estate transaction that involves the buyer and the seller and maybe, the participation of some other parties.

A settlement is the same as a closing, which means that any contractual responsibilities between a buyer and a seller are resolved at that point. This accounts for any remuneration owed to your real estate agent, title firm, or attorney. 

Buying a home involves several steps and often takes thirty to sixty days until you are finally ready to close on it. This closing meeting could occur in your lender's office, insurance company, real estate agent, or title firm.

First-Time Homebuyer Closing Process: The Overview

You will be required to read and sign several documents throughout the closing process, including the following:

Loan Documents

Closing documents refer to the papers that either the home buyer, home seller, or both parties involved in the sale of a home must sign for the deal to be finalized. 

In most cases, the documents will provide the home buyer with information regarding the total amount of the closing fees while the seller will receive confirmation of the sale.

Purchase Agreement

The seller must sign the purchase agreement and then send it back to the real estate agent representing the buyer. This agreement details any conditions attached to the offer and the date that was settled upon for the transaction to be completed. 

The seller must hold any "good faith" or a deposit the buyer offers in escrow until the transaction is completed. The deposit is released from escrow as soon as the mortgage paperwork is signed, and the buyer is free to utilize it however they see fit, generally using it toward the down payment or other expenditures associated with the closing.

Closing Disclosures

Closing Disclosures include mortgage terms, interest rates, monthly mortgage estimates, and closing expenses.

Real estate law requires lenders to inform buyers of the Closing Disclosure three business days before closing. Buyers can analyze and comprehend mortgage costs during this time.

The loan estimate estimates homebuyer costs, but the Closing Disclosure is accurate. Buyers can also check their name spelling and loan duration on the Closing Disclosure. The lender will provide updated Closing Disclosures and reset the 3-business-day window when the buyer notifies them of the changes.

Conclusion

A team of escrow officers will work through each piece of paperwork with you step by step to ensure that you fully comprehend the terms and circumstances of your transaction.

We also provide a variety of technological options to simplify the closing process. These solutions include electronic signatures and remote online notarization, making it simpler than ever to complete your closing without leaving the convenience of your home.