Buying a home or new property is an exciting undertaking. You want to know that everything in the process will go off without a hitch. At Liberty Title, our title and closing experts are professionals with expert understandings of the closing preparation process. We can walk you through it so you don’t have to worry about a thing. This helpful resource explains everything you need to know about closing preparation.
Closing a Sale
Once your offer has been accepted, closing is the final step in the home buying process. Closing is also referred to as escrow or settlement. In the closing process, everyone involved in a sale will come together to sign all the legally binding documents related to the sesale, from mortgage documents to deeds.
The ultimate purpose of closing is to finalize the legal transfer of ownership from the seller to the buyer. In order to ensure a smooth transition, your title company will make sure everything is in perfect order during closing preparation.
Whenever you buy a home, you will need to sign a purchase agreement. This is a contract which outlines both the price agreed upon and the specific terms of a sale. These terms and conditions are generally outlined to protect the buyer and seller. For example, they may require the seller to make certain repairs or the buyer to provide loan documentation by a certain date. To prepare for closing, the real estate agent will send a copy of this agreement to the title company.
Purchase agreements commonly outline the conditions of the following:
● Sales Price and other monetary agreements
● Appliances and other personal property
● Any other additional items agreed upon
Next, it is time for the title examination and processing. The title processor will open the order and assign a file number for your title. The abstractor will then perform an assessment search, name search, and search of public records for information that may affect your title.
This includes mortgages, deeds, liens, divorce settlements, inheritances, and more. They will submit these documents to the examiner for review before closing. The examiner will then create and send a title commitment to the processor along with any necessary instructions to clear the title.
Processing and Closing
After the processor has cleared any title defects noted in the commitment, the processor will send everyone involved in the closing a notification. This includes real estate agents, lenders, buyers, and sellers. Before the closing date, the processor will receive a loan package from the lender. The processor will enter all fees and create a settlement statement. After this is approved, the loan will be clear to close.
Title Closers Serving Minnesota
When it comes to your new real estate purchase, don’t leave anything to chance. Our team at Liberty Title knows everything about the closing process so your closing will be smooth and trouble-free. We can walk you through every step and take care of the details for a seamless transition of ownership. For a smooth and worry-free process, give us a call at 763.494.0340, or contact us to learn more.
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