Seller Closing Timeline
Here are some things you should know about the closing of a house for sellers.
What Is The Time Frame For Closing?
Depending on the type of loan, financing, and seller or buyer preferences, closing a home can take anywhere from 30-60 days. A house sale that closes within 30 days is a sign that the process was smooth. If there are no problems with the deal or financial issues discovered during the inspection.
What Happens During The Closing?
This happens when a seller accepts an offer and signs the paperwork that officially closes the sale.
The Buyer Pays Earnest Money To Escrow
The earnest money is a cash down payment to prove that they are serious about purchasing your home. The buyer places the earnest money into an escrow account, which is a holding account that holds 1 to 3 percent of the home's selling price. The earnest money goes towards the down payment or the buyer's share of closing costs when the deal is done.
The Loan Underwriting Process Begins With The Buyer's Lender
Underwriting is the meat of mortgage approval. Underwriting is when the lender checks the buyer's income, assets and loan amount to determine if they are a good credit risk.
The Title Company Searches For Property Records
A buyer's agent requests a review of public records (called a Title Search) to confirm that you are legally entitled to the property and can sell it. It's a provenance check for your house.
The Buyer Orders A Home Inspector
The buyer hires a professional to inspect the property and make sure it is safe and secure. Although not all buyers require an inspection, it is common in the closing process. Some sellers opt to conduct a pre-inspection, which may allow the buyer to skip this step. Sellers are usually not present at the buyer's inspection.
The Buyer's Lender Orders An Appraisal
To ensure that the property is worthy of the loan, the lender employs an appraiser. Based on the features of the property and the prices of similar homes that have been sold in the area, an appraiser will determine the fair market value. A low appraisal could delay the closing.
Final Walk-Through
The buyer and his agent will typically walk the house once more 24 hours before closing.
Sign Paperwork To Close The Deal
This is the official closing date! Sign the contract and receive your money.
Although the final step of your house sale takes about an hour, you must be prepared. Make sure you write down the closing date, time, and place. It's like missing your wedding. A no-show can be a big deal.
You Should Bring:
A government-issued photo ID.
Your house keys.
Any documentation that the escrow agent/ attorney requested.
A checkbook for emergencies.
As a seller, you will sign fewer legal documents than as a buyer. You probably had hand cramps when you initialed every page of a stack of four-inch-thick papers. The closing statement, the affidavit, the deed, and the bill will be your only responsibility. Before you sign anything, make sure to read it carefully. You must ensure that the information you provide is accurate.
What Closing Costs Should I Be Prepared For?
You can expect closing costs equal to 8% to 10% of the sale price of your home. The terms of your deal and where you live will affect the closing costs.
