Buying a home is a process and we said this more than a million times. Once you get into a contract to make the purchase, the transaction will only be final after closing. It’s normal to have several questions and few answers when search for an ideal home in Houston, TX. Home closing questions that you might find yourself asking is:
What’s closing?
Also referred to as “Settlement” in other circles, closing is the legal transfer of your home’s ownership. In most cases, the possession gets transferred at closing. In other instances, the seller might request you to close the sale but allow them to retain the possession, and pay the monthly rent until the day they’ll be able to relocate to a different home.
Who attends closing?
In most states, face-to-face closing is more common. If you want to know how things normally go down in your state, you should talk to your agent or property cash investor. The participants usually include:
- The seller of the property
- The prospective buyer
- The seller’s and buyer’s real estate agents
- The seller’s and buyer’s attorneys
- The escrow agent, the title insurance representative, and the closing agent. Chances are one person will fulfill all the three roles: disbursing funds, recording and coordinating the documents and money exchange, and handling all the other closing details.
Where is closing usually held?
Nobody should convince you to close on the kitchen counter. If that’s what you’re being told, just know that you’re about to be scammed. The closing business has to be held at the office of a reputable title company. It’s the title company’s job to identify the various restrictions that can influence the property sale, reveal liens, mortgages, unpaid taxes, or judgments on the property, and confirm the current legal owner. Any issue will have to be dealt with before the buyer receives the title.
What should be brought to the closing table?
If you’re selling the traditional way, your agent will let you in on all the documents that will be required to close the deal. However, buyers usually bring:
- Proof of insurance
- Payment of closing costs
- Property inspection approval
What normally happens at the closing table?
Expect to sign documents. Lots and lots of documents. This is the part where the services attorney and agent will come in really handy. You don’t want to sign the papers before reviewing them only to be caught up in legal battle later on down the road. Frequently used documents include:
- Closing Disclosure statement – it has all the details about all the funds that will be changing hands between the seller and the buyer
- Truth in lending statement – your loan terms in a summary
- Mortgage note – a legal obligation to pay back the lender
- Deed of Trust – the legal ownership transfer: hands the lender the power to claim the property if you can’t pay back what you owe
- Affidavits – binding statements by the home seller or buyer
- Riders – any agreement amendments that influence your rights
If you feel like these are too much papers to deal with, take the other route that involves a cash investor in Houston or professional homebuyer. Call us today. We would really love to hear from you.