Most people won’t buy more than one or two homes in their lifetime, which makes it challenging to become familiar with the home buying process. If you are buying a home for the first time, or if it has been a few years since your last move, it’s a good idea to read up on what the closing process involves.
Our team at Bright Law, PLLC has handled countless residential closings over the years, and we’re here to share how most residential closings work. As a buyer, you’ll have to follow these steps:
- Hire a Closing Attorney – Residential closings involve multiple legal steps, so you will need to hire an attorney. Our team has the right experience to take care of all the details, and you can count on us to get the job done right.
- Enter Escrow – When you are ready to close on a house, you will need to enter escrow, which is a legal arrangement where a third party temporarily holds money or property (in this case, the property itself and your payment for it) until certain conditions have been met. This type of agreement prevents the seller from accessing your money until the transaction is complete.
- Conduct a Title Search – A key step in all residential closings is performing a title search. Our team will research the history of the property, who purchased it, and when it was purchased to make sure the seller has the legal right to sell it to you.
- Schedule a Home Inspection –Having a third party look at the house and its various structures and systems allows you to get a more accurate idea of its condition. If your inspector finds any red flags, you can back out of the deal, or you can use the information to negotiate a better arrangement for you.
- Deposit Funds – Once the contract is finalized, but not yet signed, you will need to deposit your down payment and closing costs into escrow so the money can be transferred to the seller.
- Signing – The last step in residential closings is to sign all the paperwork to seal the deal. Once this step is complete, ownership of the home will transfer to you.