What to Expect at a Real Estate Closing
When buying a house, most first-time home buyers think of the moment when they have the keys in hand, and the home is officially theirs. However, there are a lot of steps to be taken before reaching this celebratory moment, and one of those is the real estate closing.
By working with the experts at Mark Spain Real Estate, you can ensure you take all the right steps toward a successful real estate closing. With decades of valuable industry experience, our team offers exclusive market insight to help you navigate all of the complexities of the closing process. For buyers looking to prepare themselves for their first real estate closing, this blog is for you. Read below to learn what to expect at a real estate closing.
What to Expect at a Real Estate Closing
What Happens at a Real Estate Closing?
Once you’ve reached closing day, you are nearing the finish line toward officially owning your home. Leading up to this point, as the buyer, you will have secured your mortgage loan, conducted a home appraisal, discussed the costs of any needed repairs, and done a final walkthrough of the property. Then, during the official real estate closing, you, the seller, and your respective agents will meet to make final payments, sign legal documents, and officially transfer home ownership titles.
Who Is Present at a Real Estate Closing?
There are many parties involved in a real estate closing; so many that often, the closing process will be completed in steps over multiple days. Generally, not all of the parties listed below are required to be present on closing day. However, most of them usually attend.
- The buyer
- The buyer’s agent
- The seller
- The seller’s agent
- The buyer’s mortgage lender
- A title company representative who provides documents on the property ownership
- A closing agent who conducts the settlement meeting and ensures all documents are signed and fees are paid
- A real estate lawyer
How Much Are Closing Costs?
The costs of buying a home go beyond just its sale price. As a buyer, you should expect to pay several other fees for your real estate translation. These costs can depend on your home’s sale price and your financing method, but they will typically include the following:
Mortgage Origination Fee
Your mortgage origination fee will cover the cost of your loan application. Typically this will cost about 1% of your total mortgage. However, you can sometimes negotiate this price if you have financial leverage, like a strong credit score.
Appraisals are conducted to determine the home’s market value. The mortgage lender requires them to ensure you’re paying a fair price for the property. Generally, a home appraisal will cost a few hundred dollars.
As a buyer, you’ll acquire title insurance to protect yourself from potential title discrepancies. For most states, title insurance is required to close on a home and is typically paid as a one-time fee at closing.
Real Estate Agent Commission Fee
Real estate commission is part of a seller’s closing costs. The seller will typically pay their agent 6% of the home’s sale price, which will then be divided between the seller’s and buyer’s agents.
In some cases, buyers may need to pay prepaid costs at closing, such as property taxes, homeowner’s insurance, and rental property insurance.
Private Mortgage Insurance
As a buyer, if you cannot put forth a big enough down payment, you may have to pay for private mortgage insurance. Doing so will provide a safety net for your lender in case you stop making payments on your loan.
Recording Fees and Taxes
Local governments typically charge a recording fee and taxes to legally document the real estate transaction. Sellers and buyers will both acquire this cost.
How Can I Prepare For My Real Estate Closing?
As a buyer, there are multiple steps you can take to prepare for your real estate closing. First, you’ll want to gather a team of trusted professionals to assist you with the process. Hiring an experienced real estate agent like the ones at Mark Spain Real Estate lets you breeze through the closing process knowing you’re in good hands. A seasoned real estate agent will help you network with other valuable players, including mortgage professionals, home inspectors, real estate attorneys, title insurance agents, and escrow officers.
Once your team is assembled, you can create a pre-closing checklist. From opening an escrow account to negotiating closing costs, you’ll want to go into the closing day knowing you’ve checked every box on your pre-closing to-do list. At Mark Spain Real Estate, our experts will help ensure everything is squared away before you sign on the dotted line. With years of industry experience, our team ensures a stress-free real estate closing for buyers and sellers alike.
Sell or Buy a Home with Mark Spain Real Estate
Are you closing on a house? The industry professionals at Mark Spain Real Estate are here to help you every step of the way. Delivering unparalleled customer satisfaction, our team of expert listing consultants will help you navigate your real estate closing hassle-free! Check out our Guaranteed Offer Program for the potential to receive a competitive cash offer on your home in only 21 days. Contact our agents today!