How to Effectively Close on a Home

Real Estate Tips
January 30, 2024

What is the House Closing Process?

Before you get your keys, understanding the house closing process is essential. The closing process, in simple terms, is the steps you take to obtain your home. The closing process typically involves the signing of the closing documents, the transfer of funds, the transfer of ownership, and the delivery of your keys to your new home!

The timeframe of closing on a home can vary depending on a few factors. If you are getting a mortgage to finance your home, then it can usually take up to 60 days. Whether you are planning on buying or selling a home in the near future, keep reading to learn more about closing on a home!

The Breakdown of Closing on a New Home

Take a closer look at the breakdown of what the process entails:

Submitting the Right Documents: To close on a home, you’ll need to have the right documents. This includes your loan documents, proof of insurance, valid, government-issued photo identification, and proof of funds. You’ll have to sign the closing documents, which will contain all the important information about the home purchase.
Choosing a Homeowner’s Insurance Plan: It’s important to have homeowner’s insurance to protect your home and belongings in the event of an accident or natural disaster. Make sure to research and compare different plans to find the one that best suits your needs.
Reviewing Documentation: If you are not paying upfront, the lender will then review the documents to make sure all the requirements are met. If all is in order, the lender will then issue a closing statement. The statement will include the loan terms, fees, rate, and other costs. There should be basically no difference between the initial loan estimate you received and the final closing disclosure statement you received.
Getting Your Money Ready to Close: You’ll have to transfer the funds necessary to purchase your home. Your lender or real estate agent will provide you with wire transfer instructions. Make sure to review the credits in your closing disclosures. This includes credits for costs that you’ve already paid or costs that your lender or seller agreed to pay.
Officially Closing on Your New Home: The last step is to officially close on your home and get your keys! Then, make the home your own and enjoy being a new homeowner.

Ways to Make the Closing Process as Efficient as Possible

If you plan on speeding through the closing process, you may be out of luck! Many factors outside of your control can hold you back from closing on your home. However, there are a few things in your control to make the closing process as efficient as possible, including: