Piecing the Closing Process Together
As promised, we’re moving forward today with our series on what exactly closing on a home means, and how to best prepare. In today’s post, we are going to look at some specific pieces of closing and how to complete them.
Assembling Your Team
It can become overwhelming trying to hold all of the pieces of the closing process together, which is why there are now so many professions that exist simply to help you through various aspects of the procedure. Like George Clooney in Ocean’s 11, you have the chance to now assemble your team to help you obtain your new home!
Members of the team will likely include people such as an escrow officer, a mortgage expert of some sort, a home inspector, an attorney, your real estate agent (of course) and a title insurance agent. The first member of this team, one you likely already know, is your real estate agent, and the odds are very high that they will be able to help you obtain all the other players so that you’ve got a nicely stocked crew when it is time to head into the final phases of the homebuying process.
After putting your team together, the usual next step is the home inspection. This is an important part of the process as it will ensure that the house you are about to purchase is not crumbling off of its own foundation. We’ve written in lengthier terms about the home inspection in previous posts, but it never hurts to be refreshed!
Most home offers include an inspection contingency, and this refers specifically to this part of the process. The contingency likely says that if there are structural, electrical, or other major issues with the home that would cost over a certain amount to repair, then the current homeowner (the seller) is on the hook to either take care of these issues or you (the buyer) is free to walk away from the deal without forfeiting the earnest money.
Without an inspection as part of your closing process, you might find yourself in possession of a building with many flaws that require an additional significant financial investment to remedy.
In conclusion, although it might seem like an extra annoyance, having a home inspection is essential to protecting yourself in case your dream home harbors malicious nightmares.