Overview Of The Closing Process – Most of us dream of reaching a point where we no longer owe money on our mortgage. That’s one of many factors that makes it enticing to buy a home sooner rather than later. While the home buying process is often exciting, not everyone is familiar with what happens during closing.
The closing process of buying a home actually involves a handful of different situations and is more than simply having the owner hand the keys to you.
Overview Of The Closing Process
Escrow is a term that many people are familiar with but aren’t quite sure what it means. To put it simply, entering escrow means that the transfer of the money and ownership of the property is in a sort of ‘pending’ state. When you make an offer on a home, you’ll write a check to the seller that’s held by a third party so that negotiations can be made. Until an agreement is reached, this money can’t be accessed by the buyer or seller. After the sale is finalized, the party holding the money in escrow will oversee that the seller is paid and the buyer is given possession of the home.
Closing costs are another term many people have heard of but don’t know what it entails. This simply refers to the expenses you’ll incur from various financial obligations during the closing process. Typically, buyers will pay somewhere between 2% and 5% of the home’s total value in closing costs. There are numerous different services and fees you’ll need to pay.
There’s a substantial amount of paperwork to handle during the transfer of a property. In order for the transaction to be official, you’ll need to sign all of these documents during the closing process. Although not always mandated, it’s not unwise to have an attorney present while everything is signed to ensure no complications arise.
How long is the process?
Studies have shown that it takes approximately 45 days to close on a home. Of course, this number could be more or less depending on factors like the negotiation period, financing delays, etc. In general, though, you can expect closing to take anywhere from 30 to 60 days on average.
Closing on a home can be difficult, but it doesn’t have to be. With the above information about handling closing in mind, you are well on your way to making sure that the process goes as smoothly as possible.
If you would like more information on buying or selling real estate, contact our office, we would love to help you!
For more information on real estate in Snohomish County please contact us anytime.
More Advice for Homeowners
- 10 Ways Homeowners ‘Trick’ Buyers in the Inspection
- What to know about the first year of homeownership
- The Importance of a Home Warranty
- Choosing What Spring Cleaning Tasks to Tackle
- 8 Creative Ways to Meet the New Neighbors
- Tips for Handling Humidity and Moisture in a Home