A closing is one of the most important steps in the home buying process – but if this is your first time purchasing a house, you may be wondering exactly what’s involved. Let’s break down what a closing
is and what you can expect.
What us a house closing? Simply put, a house closing is the final stage in the buying process, during which buyers fulfill all of their contractual obligations. In other words, this is the stage at which buyers settle their payment to sellers. There are also closing costs to consider, which are typically 2 to 5% of the loan amount and can include things like a title search fee and transfer taxes.
When does the closing usually occur? Time frames vary, but closings are typically held within one to two months after your offer is formally accepted. During that time, buyers usually schedule appraisals and home inspections.
What can I expect on closing day? Expect a lot of paperwork! You’ll be signing contracts between yourself and your lender (basically agreeing to the terms of your mortgage), as well as with the property sellers. For new construction houses, you’ll need to sign a certificate of occupancy. Once you’ve settled any outstanding payments and signed the necessary documents, you’re officially the owner of your new home.