The real estate closing process can be confusing and overwhelming, especially for first-time home buyers. Global Legal is here to help you understand the basics of real estate closings so that you can feel confident and prepared when it’s time to sign on the dotted line.
To understand and make the best decision for your interest, here’s what you need to know about the real estate closing process:
What is a real estate closing?
A real estate closing is the final step in the home buying process. It involves signing the paperwork that officially transfers ownership of the property from the seller to the buyer.
Once the closing is complete, the buyer is responsible for all aspects of the property, including any necessary repairs or maintenance.
The exact documents that need to be signed vary from state to state, but they typically include:
The purchase agreement: Is the main contract between the buyer and seller. It outlines the agreed-upon purchase price, contingencies, and other important details about the sale.
The deed: This document officially transfers ownership of the property from the seller to the buyer.
The mortgage: If the buyer is financing the purchase, they will sign a mortgage agreement at the closing. This document outlines the terms of the loan, including the interest rate, monthly payments, and length of the loan.
The promissory note: This document is signed by the buyer and outlines their promise to repay the mortgage.
The truth in the lending statement: Provides information about the costs of the loan, including the interest rate, fees, and monthly payments.
The HUD-1 settlement statement: Itemizes all of the costs associated with the purchase of the property.
The deed of trust: This one is signed by the buyer and outlines the terms of the loan, including the interest rate, monthly payments, and length of the loan.
The title insurance policy: This document protects the buyer from any potential claims or liens against the property.
Why is it necessary to use a law firm for real estate closings?
An experienced attorney can help to ensure that the closing process goes smoothly and that all of the necessary paperwork is in order, legal guidance can answer any questions that you may have about the closing process and help to protect your interests.
An attorney can do many things for you when closing a real estate transaction, including reviewing and negotiating the purchase contract, reviewing the title report, and attending the closing with you.
By having a legal assistant, you will be available to resolve any issues that may arise during the closing process. Global Legal is here to help you every step of the way, from finding the perfect property to signing the final paperwork at closing. Contact us and let us help you make your real estate dreams a reality.