What You Might Not Know About Your Closing - Northern Title Blog
post-template-default,single,single-post,postid-15558,single-format-standard,qode-listing-1.0.1,qode-social-login-1.0,qode-news-1.0.2,qode-quick-links-1.0,qode-restaurant-1.0,ajax_fade,page_not_loaded,,qode-theme-ver-13.0,qode-theme-bridge,wpb-js-composer js-comp-ver-5.4.4,vc_responsive

What You Might Not Know About Your Closing

What You Might Not Know About Your Closing

5 Amazing FAQs Reveal What You Might Not Know About Your Closing


Closing on a house can feel scary. Especially if it’s your first time. But it doesn’t have to be. In fact, if you understand the process and know what to expect, closing doesn’t have to be stressful– it can be a very positive experience. It’s important to learn about the process so you don’t sweat the details. Answers to these frequently asked questions can ease your mind and build your confidence when it’s time to close.


1. What can I expect at the closing?


Because closing isn’t always a rapid process, be sure to allot yourself ample time to close on your home. Block out an entire morning or afternoon towards the middle of the month to allow time to resolve any unforeseen issues that may arise.


Buyers are also allowed to do a final walk through 24 hours before closing to determine any additional damage or problems with the home. This protects them in the event of any major damage. If so, you can negotiate repairs and costs that would account for such issues.


It’s important for you to have every document you’ve received throughout the closing process with you at the closing table. Normally at the closing you will be accompanied by the seller of the home, their real estate agent, a title company representative, the lender, attorneys, and a closing agent.


2. What do I need to bring to a closing?


It might seem like you need a laundry list of items before you can close on your home, but these are all important pieces to being prepared to settle in.

  • Receive the signed purchase agreement.
  • Make an escrow deposit, if necessary.
  • Order a home inspection.
  • Negotiate with the seller if there are problems.
  • Complete your mortgage application.
  • Read your loan estimate.
  • Analyze the appraisal.
  • Obtain necessary insurance.

    Depending on your situation, you may need to provide additional information from the previous owner of the home. Be sure to ask your lender if you have everything in order. Then you can blame them if you are missing something!


3. How long does it take to close on a home?


In a perfect world it wouldn’t take more than a few days to close on your home. The reality is that on average, closing timelines can take between 35 and 45 days. (Hang in there, it’s no so bad!) Though most federally related mortgage loans can close within 30 days, that is atypical. Because each buyer is unique, so is their circumstance with their home. The more prepared and informed you can be as a buyer, the more likely your process will go smoothly and quickly. Isn’t that what we all want?


4. What about homeowners insurance?


Buyers will be in charge of providing homeowners insurance. This is something that should be taken care of in advance. That way the insurance can be issued before the actual closing date. This is an important step as failure to secure insurance can delay the closing. A lot of lenders will require a receipt of your policy that clearly identifies the lender and outlines the duration of the policy. Not sure where to look for a good policy? For a list of homeowners insurance options, stop by our office or call us up and we can walk you through a few different options. Then you can shop around and find a good rate.


5. Who is responsible for paying for title and closing services?


Typically closing costs are taken care of by the buyer. Closing costs are usually 2-5% off the sale price. So for example, if a home costs $300,000 the closings costs would be $6,000 at 2% and $15,000 at 5%. If negotiated, the seller can cover closing costs as well, though it is not as common. A lot of times, the closings costs will be factored into the initial sale price of the home and such will reflect in the contract. The items making up for these costs are:

                  Survey & Inspection Fees

                  Attorney Fees

                  Appraisal & Credit Report Fees

                  Lender’s Title Insurance Policy

                  Recording, Title search, & Underwriting Fees

                  Loan Origination & Escrow Fees

See? There’s really nothing to worry about! Your closing experience should be exciting. It means that you are finally done with the process! Remember, the more prepared you are the easier it will be to close in a timely manner. If you have any additional questions or just see need some reassurance, our staff is ready and eager to help you out. We’ve been there before, so you know we’ve got your back.