We understand the details and paperwork that go into closing on a home can intimidate most consumers. As experienced realtor Colorado Springs, we make it our job to master the buying and selling process, especially when it comes time to closing on your dream home.
If you’re a first time home buyer and you’re not sure what to expect, use this as a resource to teach you the basics of the closing process. And don’t forget, when you choose an experienced realtor Colorado Springs, they’ll help walk you through negotiations and closing from start to finish.
Real Estate Closing 101
Real estate closing begins during the offer and negotiation stage. When a buyer makes an offer on a house, they also propose a closing date.
The seller can accept the buyer’s proposal or make a counteroffer for a different date. Negotiations on a closing date between a buyer and seller rarely take long. However, negotiations on the purchase price is another story.
To allow enough time, closing dates are usually scheduled a few weeks after the offer is accepted. This allows time for home inspections, an appraisal by the lender, and the underwriting process.
What Happens During Escrow?
The time between the offer and closing is referred to as the escrow period, meaning the sale is pending but the deal isn’t final. Escrow typically lasts around 30 days, but can be longer or shorter. The length of escrow is agreed upon between the buyer and seller when negotiating the contract.
Beyond the transfer of money and massive amounts of paperwork, real estate closing is referred to as a settlement. It’s the last step in a transaction to buy a home or property, including the transfer of property from one person to another.
Even though you may choose a closing date, the final date may be determined by the lender. Since the mortgage company is underwriting the loan during escrow, they get to decide what date the deal can close.
They try to work within your proposed timeline, but it’s important to understand that more time may be needed. Thirty days is typically enough time to process most loans.
Closing Day – The Big Day!
Closing day includes the following steps:
- The buyer or lender provides a check for the amount owed on the home according to the negotiated purchase price.
- The seller signs the deed over to the buyer to transfer ownership. House keys, garage door openers, etc. are then turned over to the buyer.
- The title company or lawyer registers the new deed with the local government showing the buyer as the new owner.
- The seller receives proceeds earned by the sale after their mortgage balance and closing costs are paid.
When you work with an experienced, local realtor in Colorado Springs, you know you’ll receive great service from start to closing. Learn how the realtors at Behr & Behr can help you sail through the closing process with ease.