THE CLOSING PROCESS - FAQ

Dated: December 3 2022

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THE CLOSING PROCESS - FAQ

WHAT HAPPENS DURING CLOSING?

On closing day, buyers will sign between 50-100 pages of paperwork to finalize the purchase of the property. This includes property transfer documents and any loan paperwork. If the property purchase does not require a mortgage, the process will be much quicker.

The documents, such as the deed, the loan paperwork, disclosure forms, etc. will be explained to you. Don’t feel pressured to rush; take your time to read each page and don’t be afraid to ask questions.

ARE THERE CLOSING COSTS?

You’ve already paid an earnest money deposit at the start of the contract, but there are a few more fees before the purchase will be finalized. These costs usually include the home inspection, homeowner’s insurance, appraisal fee, and credit report charges.

Before closing day, your lender will provide you with a figure that includes:

-      Down payment amount

-      Prepaid interest

-      Closing costs

-      Required property taxes

-      Prepaid homeowners insurance

WHAT DO I NEED TO BRING WITH ME?

To make sure everything runs smoothly, you’ll need to bring a few things to your closing appointment.

-      Non-expired photo ID

-      Final closing payment

-      Proof of homeowners insurance

I’M BUYING AND SELLING PROPERTY, CAN THEY CLOSE AT THE SAME TIME? Simultaneous closings seem efficient, but with so many different parties to the transaction, it’s usually easier to schedule them on the same day instead of at the same time.

WHEN DO I GET THE KEYS?

The title company and your lender will finish the funding process. After the transfer of funds has been verified, the keys can be released. In some cases, The title company may have your keys, in other instances the keys transfer between real estate agents. Be sure to discuss the transfer of garage door openers and other security items.

If the seller is staying in the home after closing (a lease back), you may receive “rent” during this period, and the seller will transfer the keys after the agreed upon move-out date.

WHEN CAN I MOVE IN?

If your keys have been released, you can move in! However, delays can happen. You may consider scheduling your moving date a few days after closing in case complications arise.

**SHOULD I KEEP ALL OF THESE DOCUMENTS?

**Copies of your final executed closing documents will be bound together and given to you. Your final title policy will arrive in the mail within 30 days of closing. Some documents may be needed for tax reporting purposes and your lender, if you have one, will inform you of your payment schedule. If you plan to live in your new property, you can also submit documentation for a homestead exemption.

 

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Rebecca Wooten

My name is Rebecca Wooten. I am a wife, mother, friend, and Realtor. I have worked and lived in the Northwest Hill Country/Lake Travis area since 2005. Being local and loyal to my peers and clients, m....

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