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Buying a property is a big step involving a substantial long-term financial commitment, so it requires a thorough assessment of what you can afford.
- A lease option may be available (an arrangement between the buyer and the seller to purchase a house after renting it for a specific period of time)
- We recommend hiring a professional home inspector to help you avoid costly home buying mistakes.
- We recommend taking out Homeowners’ Insurance to protect your new asset
Ownership of the home is officially transferred to you at the closing meeting. Closing can also be referred to as settlement or escrow. Your CENTURY 21® Agent will guide you through the closing process, as local/state laws vary. Before you officially own your own home, here is what needs to happen:
- In advance, a title company is usually hired to conduct a search for any recorded documents that affect the deed to the property. Examples include easements, liens, tax assessments, covenants, conditions and restrictions, and homeowner association bylaws. The buyer and lender must approve the preliminary title report prior to closing.
- Once the conditions of sale have been met and the preliminary title report has been approved, all parties will agree to sign closing documents. The preliminary title report then becomes the final title report, on which any applicable title insurance is based.
- If everyone agrees that the papers are in order, the buyer submits payment to cover the closing. If the lender will be paying your annual property taxes and homeowners’ insurance for you, a new escrow account (or reserve) is established at this point.
- Finally (and here’s the best part) you receive the keys to your new home! You just have to move in.
TIP: After the documents have been signed, notarized copies will be forwarded to the lender, funds will be released, and the sale will be recorded at the local recorder’s office. This legal transfer of the property may take a few days. It is at the point of deed recordation that you become the official owner of the home.