10 absolute steps to closing a real estate deal with ease

Technically, the ‘closing’ of a deal occurs when you sign the papers that make the property yours. But before that happens, there are a few things you need to know. A little practical knowledge of how real estate transactions work can go a long way.

1. Walk around the property

Better safe than sorry! Inspect the house one more time to make sure it is in proper condition as agreed to by all parties. During the tour, make sure that all the conditions required by the agreement have been met, such as appliances and furniture.

2. Secure the required insurance policies

To obtain a mortgage, most lenders require the buyer to purchase a homeowners insurance policy. The homeowner’s insurance policy protects both the buyer and the lender, in case something happens to the home in the future.

3. Open an escrow account

An escrow account is an account maintained by a third party on behalf of the two parties to a transaction. This makes things easier and more comfortable, as many activities are required to complete a home sale. Also, an escrow account is the best way to prevent the seller or buyer from committing any kind of fraud, since the money and related documents are with a neutral third party.

4. Lock in your interest rates

Since interest rates are unpredictable and fluctuate several times a day, you should monitor interest rates and lock them in if you haven’t already. Keep an eye on the market and lock in your interest when the rates are the lowest and most affordable.

5. Carry out the pest inspection

A pest inspection involves a specialist who makes sure your home is free of wood-destroying insects like termites or carpenter ants. Even a small termite problem can spread and destroy your entire home. Therefore, treat any minor pest problems immediately, if any.

6. Get title insurance

A title insurance policy is a policy that protects the buyer and the lender when there are problems with the land after the sale closes. When obtaining a title insurance policy, find out which policy offers the best protection for the least amount of money.

7. Consult an attorney

It is difficult to create legal documents and confirm the laws related to the real estate market. Hiring an experienced attorney will make things easier for you and help you with closing documents.

8. Renegotiate your offer

If your inspection reveals defects or flaws in the property, you may want to reconsider the offer to reflect the cost of the repairs you need to make.

9. Finalize your finances

Before closing the deal, get all your finances in order and make sure you have the money you need to pay for your closing costs and down payments.

10. Schedule and attend closing

Sign the huge paperwork and make sure both parties are present for the closing. Also, make sure the interest rate on the papers is correct and that there is no prepayment penalty. If you have hired an attorney, they must be present on the spot with you to ensure that all paperwork is completed correctly.

Closing a real estate deal can be a tedious business, but once the deal is closed, you can breathe a sigh of relief. If you are ever unsure of what you are doing, consult a real estate expert or attorney for help.