The Closing

The house will be officially signed over to you on the closing day. The length of time it takes to close on a house can vary from as little as 15 days to as many as 90 days. In that time period, a third party will take over the paperwork, your lender will approve your loan, you and the seller will satisfy contract contingencies, inspections will take place, the title will be cleared, you will arrange for homeowners' and title insurance, you will review closing costs with your lender, and a closing day will be scheduled. This all depends on the conditions attached to the agreement and the complexity of the transactions involved.

There are many things you should consider before the closing in order to ensure a smooth and pleasurable transaction. A tax advisor or an accountant should be consulted if you are purchasing a home towards the end of a year. It might be to your advantage to wait until January of the next year to have the closing. If the closing is pushed to January so will the tax savings involved. Make sure you agree to a closing date that is to your advantage. For example, if you're presently renting, set a closing date near the end of your lease so you can avoid unnecessary rent or fees for breaking your lease. If you plan on moving in to your new home on the closing day, try to schedule your closing to be early in the day allowing plenty of time for the move. Always ask for an itemized list of closing costs from your lender. You should always be aware of what you're paying for and make sure your lender explains what each fee is. Lenders are required to provide a good-faith estimate of closing costs within three days of a loan application. Typically, closing cost range from 2 to 7 percent of the purchase price of a home. Before the closing you should perform a final, personal inspection of the home. During this walk-through you should make certain that the seller has performed all the repairs that were specified in the purchase contract and has also satisfied any other contingencies involving the home's condition, and this will also help you to organize and schedule your move.

The actual closing process differs with each transaction and from area to area. In some instances you might be sitting across a table from the seller or you might be in separate rooms with real estate agents, attorneys, an escrow officer or settlement agent passing checks and documents between the two parties.