Having been in business for over 30 years, the Realtors at Progressive Urban Real Estate are well versed in the process of becoming a homeowner. In In last week's blog post, we detailed what to expect during the closing process; leading up to closing and on the day of closing. In this blog post, we will provide guidance on how to prepare for the closing process.

In a real estate transaction, the closing is the final exchange in the sale and purchase of real estate in which the deed of title is delivered to the buyer, the title is transferred, financing documents, title insurance policies are exchanged, and the agreed-on costs are paid.

As a quick refresh, here is a simplified breakdown of what happens during closing and when the buyer finally becomes the homeowner. To read a more extensive list of what to expect during the closing process, take a look at last week's blog post. 

1. The buyer signs a number of documents that are related to the mortgage loan and the sale of the property. 
2. The buyer pays all closing costs related to the sale of the property.
3. The title is transferred from the seller to the buyer and the buyer receives the keys to their new property!

So, how can home buyers prepare for the closing process? Here are a few tips for making the entire process as easy as possible:

Save, save, save! 

Start saving money as soon as possible. On closing day, there are a number of costs that buyers will incur including the down payment, processing fees, and other associated costs. The more financially prepared you are, the better! 

Keep an eye out for important documents.

One document important to look for is the Closing Disclosure document. This document will contain details about your home loan, your monthly mortgage payments, and your closing costs. It will tell you how much you actually have to pay when you close. It also provides a line-item breakdown of the individual costs and fees. This information will be especially helpful for buyers when securing funds for the day of closing. 

Get your funds all squared away.

Talk to your mortgage loan officer and your escrow agent to identify what the preferred method of payment is. It is important to have your payment prepared in advance so that there are no hold ups on the day of closing. 

Stay in touch with your key points of contact.

This includes your real estate agent, loan officer, and escrow agent who can answer questions you might have relating to the closing process. Be proactive! Communication is important during this process and ensuring that you have completed and provided all necessary documents leading up to the closing will help the entire process run as smoothly as possible. 

Have any further questions regarding the closing process and how home buyers can best prepare? Ask your Realtors at Progressive Urban Real Estate!