10 Steps to Closing on a House

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10
Steps to Closing on a House
Slope Style Realty
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The house closing process, which in different
parts of the country is also known as
"settlement" or "escrow," is increasingly
computerized and automated. In many cases, buyers
and sellers don't need to attend a specific
event signed paperwork can be sent to the
closing agent by overnight delivery. Closing occu
rs when you sign the papers that make the house
yours. But before that magical (and often
stressful) day arrives, a long list of things
have to happen. This article will explain what
you can expect during the closing process from
the moment your offer is accepted to the moment
you get the keys to your new home. 
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Open Escrow
1.
Escrow is an account held by a third party on
behalf of the two principal parties in a
transaction. Because there are so many things
that have to happen to complete a home sale, the
best way to prevent either the seller or the
buyer from getting ripped off is to have a
neutral third party hold all the money and
documents related to the transaction until
everything has been settled.
Address Legal Issues
2.
Get the title insurance cleared to prevent any
legal claims down the road. You may even consider
a real estate attorney, not just for the title,
but for all the paperwork yet to come.
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Negotiate Closing Costs 
3.
First, make sure youre not paying any
unnecessary fees. A lot of services will sneak in
unnecessary fees that a real estate attorney can
help you flag. Then, of the remaining fees,
decide who pays what. The seller usually ends up
paying most of the closing costs.
Home Inspection
4.
Hire an inspector (usually by Realtor
recommendation) to check out the property. If
you find a serious problem with the home during
the inspection, you'll have an opportunity to
back out of the deal or ask the seller to fix it
or pay for you to have it fixed (as long as your
purchase offer included a home-inspection
contingency). 
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Pest Inspection
5.
This is a separate step from the home inspection.
A professional will come out to look for
termites, rodents, etc. and any damage caused by
such critters. If inspections reveal any
problems, you may want to renegotiate the
home's purchase price to reflect the cost of any
repairs you will need to make. You could also
keep the purchase price the same but try to get
the seller to pay for repairs.
Lock Interest Rate
6.
With the help of a lender, lock in the lowest
rate you can get before signing papers. A good
lender will watch interest rates closely for you
and tell you when rates are at a low point so you
can lock then. You can also watch interest rates
by yourself online using your lender's website.
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Address Contingencies
7.
Make sure all terms in the original offer have
been met to satisfaction. These contingencies ofte
n must be removed in writing by certain dates
(known as active approval), which should also
have been stated in your purchase offer, for your
deal to close. However, in some purchase
agreements, contingencies are passively approved
(also known as constructive approval), if you
don't protest them by their specified deadlines.
Final Walk Thru 
8.
One of the last steps before you sign your
closing papers should be to walk through the
property one last time. You want to make sure no
damage has occurred, and nothing has been removed
that is included in the purchase
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Down Payment
9.
You most likely deposited earnest money when you
signed the purchase agreement. The purpose of
this deposit is to let the seller know that you
are serious, or earnest, about your intentions.
After all, the seller is going to take the
property off the market. If you back out, the
earnest money goes to the seller as compensation.
If the seller backs out, the money is returned to
you.
Sign Papers
10.
Obviously, one of the most critical steps of
closing is signing the paperwork. There will
probably be at least 100 pages. Although you may
feel pressured by the people, who are waiting for
you to sign your papers, like the notary and your
mortgage lender, read each page carefully
the fine print will have a major impact on your
finances and your life for years to come. In
particular, make sure the interest rate is
correct and that there is no prepayment penalty.
More generally, compare your closing costs to
the good faith estimate you were given at the
beginning of the process and throw a fit about
any fees that are off by more than 10.
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