What to Expect When Closing on a Home
Today marks the beginning of an exciting adventure! Throughout the next numerous posts, we are going to be exploring the various details relating to closing on a house. While you might only be in the beginning stages of homebuying, having a clear idea of the road ahead is useful when it comes to preparing – especially when this preparation concerns your budget.
As the introductory piece on this topic, we are going to begin with outlining just what exactly closing is. While it might seem obvious, the real estate market is one where what is initially clear quickly becomes complicated for those who aren’t adequately prepared. By defining all of our terms as clearly as possible as quickly as possible, we can help avoid falling into the despair of confusion later on.
Most people associate closing with the actual moment when the keys change from one set of hands to another – the day that the home finally becomes yours. And while it is true that this is the culminating moment of closing, it is only one piece of a fairly lengthy process.
Closing first begins after your offer on the home is accepted. This is when the seller has looked at all your documents and decided that your offer is the most appealing. You will then get a call from your realtor who will be thrilled to tell you that your search is finally over. The house is yours.
Before this happened, you and your realtor worked to put together a contract. Within this contract were things such as a closing date, something that is usually at least one month away from the date when the offer is accepted. The reason for such a lengthy period of time between accepted offer and actual change of ownership is simply that there is a lot that needs to be done in the meantime.
The average time it takes to close on a home is 41 days. During this time, you will be engaging in numerous things, such as:
- Ordering a home inspection
- Getting the home officially appraised
- Putting together all of the necessary loan documents
- Purchasing homeowners insurance
- Completing a final walkthrough of the home.
In our next piece, we will begin looking at each of these topics in detail.