Ultimate Guide to Closing Your First Real Estate Transaction

Ultimate Guide to Closing Your First Real Estate Transaction

Closing your first real estate transaction is a big deal. It comes with a mix of excitement and nervousness. You want to close the deal, but you know a lot goes into the process.

Once you have secured funding and made a purchase agreement, it is time to start the closing process. This post will cover some of the things you need to know about closing on your first real estate deal.

Closing Your First Real Estate Transaction

Open the Escrow Account

An escrow account serves as financial protection for both buyer and seller. With an escrow account, you give the money and documents to a neutral third party for holding. Once all closing steps are complete, the escrow agent will release the funds.

Perform a Title Search

You will need to obtain title insurance and perform a title search. The title search is an examination of public records concerning the property. It is a step to ensure the title is clean and free of rival claims or other issues.

Negotiate Costs

The closing costs on a property transaction can add up. You have title insurance, escrow fees, document research, appraisals, etc. Many people accept these fees as part of the process and pay them without question. However, it is possible to reduce the costs by negotiating the closing fees.

Property Inspections

A property can look great to the untrained eye while having serious problems. That is why you need to arrange for various property inspections. The structure, foundation, and roof will need a professional inspection. An inspector should also check the property’s various systems, like electrical and plumbing. Depending on the property and location, there may also be various specialized inspections.

Finalize the Deal

At this point, everything should be in place to finalize the deal. As long as you have the funding and the inspections went well, there should be little to consider. However, if the inspections uncovered issues, you should renegotiate the deal or back out. You must remove all contingencies if you and the buyer have met them in writing.

Final Walkthrough

With a tentative deal in place and all contingencies met, it is time for one final walkthrough on the property. The final walkthrough is a step to ensure the property is in the stated condition and ready. It is also a chance to ensure no new damage since the inspections.

Sign the Paperwork

If all has gone to plan, it is time to sign the paperwork. Make sure to review the papers with an attorney before signing. There is usually a lot of paperwork, so it will take time to review everything and sign. You will also need to arrange to have a notary witness the signing.

Do you want to learn more about real estate closing and transactions? Check out more posts and guides from Mortgage Blog. You can also contact our team by clicking here.

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