Ten steps to close the purchase of a home

Everyone knows when a real estate deal closes – that’s when you get the keys to the house and the sellers get their money. But when does the closing process actually begin? In truth, it begins when you make an offer to buy. How that offer is written determines what steps you need to take to finally receive possession of your new home.

There are many steps involved in closing. These may include obtaining financing, settling contingencies and titles, and paying closing costs. There can also be many obstacles. For example, your lender or escrow company may charge excessive junk fees or refuse to finance, or the escrow holder may make mistakes or clouds (defects) may appear on the title. Or it could go fast and smooth.

To get started, it’s important that you have an idea of ​​what a typical residential real estate closing entails. So here it is, step by step:

1. Submit a written offer to the seller.
2. Have the seller accept and sign your offer.
3. Open an escrow account, negotiate escrow and title costs, and sign preliminary instructions.
4. Secure financing and negotiate closing costs from the lender. (You must already be pre-approved for financing.)
5. Read and approve the seller’s disclosures.
6. Obtain and pass a professional property inspection and approve other reports as needed.
7. Review the title and remove the contingencies from your offer.
8. Complete any remaining escrow work and take final walkthrough.
9. Obtain funds from your lender.
10. Sign the final escrow instructions (also called closing escrow) and pay the remaining down payment and closing costs.

None of that is hard to do. If you do it correctly, you will soon receive the key to your new home. And you’ll be able to tell everyone what a great deal you got!