Buyer Home Closing Process
The closing is a critical step in the real estate transaction process. During the closing, the seller’s home is officially legally transferred to the buyer. There is a ton of paperwork and name-signing involved, so don’t be surprised if your hand cramps up quite a bit here. Here in Texas, home buyers and sellers typically finalize the sale of the home at a local Title Company per the agreed upon contract. You really want to make sure you fully understand the main elements of the closing process prior to going: Closing, Funding and Possession. Teresa Stamper can better explain these elements so you’ll feel confident before entering the closing.
- Closing is when legal paperwork is signed at the Title Company.
- Funding through the Title Company occurs when the buyer and seller both provide necessary funds per the contract and settlement.
- Possession occurs per the agreed upon contract.
Prior to Closing:
You’ll be doing several walkthroughs of the real estate to ensure your property is in tip top shape before you move in. Expect your lender to send an appraiser and/or surveyor to conduct these walkthroughs. Here’s where you want to make sure any repairs or specifications requested of the seller were completed according to contract requirements (with documentation, receipts). Prior to closing, you will be able to make a final inspection to see that your future home is still in good condition. Don’t be shy – afterall, this is your brand new home!
You’ll want to make sure you have an accurate copy of all documents before actually closing. The closing document is known as the hud, closing statement or settlement sheet and contains most of the charges that you will be asked to pay. Teresa will walk you through this process and help you understand which fees you’re responsible for paying prior to closing.
Now it’s time to follow through with this closing. Most of the information you will need is available in your contract. It specifies the local Title Company involved and the closing date. Don’t be alarmed if your closing date moves around a bit to accommodate both parties. There are two separate closing processes: the Home Sellers’ Closing and the Home Buyers’ Closing. Teresa Stamper will be by your side through these to ensure everything runs smoothly. Together you will book an appointment with the Title Company. The home buyers will not be present because they conduct their own, independent closing appointment. There are several settlement activities involved in the closing: closing the property transaction, funding the buyer’s loan and your mortgage, and possession. They are explained further below to help you better understand each element. You will sign several documents and the final version of the settlement statement.
Most Texas home buyers purchase a home using one or two lenders. Here’s the important part to note: Funds are wire-transferred from the lender(s) to the Title Company AFTER final approval of the paperwork by loan underwriters NOT by the loan officer, banker or mortgage broker you’ve been working with. The buyers’ loan underwriters are the key players in making the closing process run smoothly. The Title Company and underwriters work together in advance and during the closing to make sure everything is approved and funded correctly. You might find that all the paperwork is signed by both the buyer and seller, but funding doesn’t occur until after the close of business.
Typically, when everything goes smoothly, possession occurs the same day after closing and funding. However, terms of possession are specified in the contract between the buyer and seller. Depending upon move schedules, buyers and sellers may contractually agree to possession before or after closing.
This is the moment you’ve been waiting for! All your hard work has finally paid off, and you’ve bought a house. At the closing, your Realtor will turn over the keys, garage door openers, etc to the Title Company. The Title Company will then transfer them to you after both closings and funding have taken place. You officially hold the keys to your new house! The home selling process might seem laborious and complicated at times, but hiring a seasoned and experience Realtor like Teresa Stamper will make the process a lot less stressful. Teresa will coax you through the process and ensure that you find the home of your dreams.
How Realtors gets paid for their services:
A good Realtor truly invests in you and puts a lot of time and effort into finding you the right home. You may be wondering how Realtors get paid for their services. After funding, the Title Company provides commission checks to the Real Estate Brokers based on the listing agreement and sales contract. The seller typically pays the Realtor fees as well for both the buying and listing Realtor depending on their listing agreement.
The information provided above (concerning closing, funding, possession, loans, underwriters and title company roles) is personal commentary and does not necessarily represent the The Texas Real Estate Commission’s views or ideas. Even as knowledgeable Texas Realtors, we are not Texas licensed attorneys qualified to give legal advice or binding legal information. Realtors are not Texas licensed home inspectors, appraisers, surveyors, loan officers, bankers or underwriters or title company representatives and therefore cannot offer qualified advice on these professionals’ respective fields.