Real estate transactions can be complex. The transaction is typically complete on closing day.
It is helpful to know what happens and what to expect during the closing process and on closing day so you know how to prepare.
The general purpose of closing day is to sign all papers to finalize the transaction, exchange any remaining money and provide title to the buyer.
The real estate closing meeting itself does not usually take long. You can expect to be there for approximately one hour, or slightly longer, depending on the complexity of the transaction. The seller, buyer, real estate agent, closing agent, lender are all present at the closing meeting.
Inspection and appraisal
However, the closing process itself prior to closing day can take one to two months or more. There are many tasks that must be completed prior to closing day to ensure everything goes smoothly and the transaction can be finalized.
The property must be inspected to verify there are no major, undisclosed defects that could impact the value of the property and derail the sale. The property must be appraised and a title search conducted. A title search that reveals unknown liens on the property could jeopardize the sale.
An escrow account is opened, which holds money involved in the sale, such as the down payment or closing costs.
The final step in the closing process before the closing meeting is an official walk-through of the property. This can be done as soon as an hour before the closing meeting.
The final walk-through
The purpose of a walk-through is to inspect the property for any changes between the initial inspection and the move in date. The seller should also have removed everything from the home. No one wants to walk into a home they just bought only to find half of the seller’s items still there.
Once these steps are complete, you are ready for closing day. It is important to have closing documents reviewed by a professional so you understand what each document is for and what you are signing.