The purchase of a new home comes with a lot of excitement clubbed with a feeling of accomplishment and nervousness. After a long search, when one finally finds the ideal listing that fits within their budget, and the seller accepts the offer, the dream starts turning into reality. However, one last critical hurdle must be cleared – the real estate closing process. This step is technically the last one in the exhaustive home-buying process. A house closing process involves several formalities, overcoming which brings the buyer closer to a successful purchase.
In this article, let us look at the final steps or checklist of things one should expect during the closing process to make it a successful closing deal.
What Is a House Closing Process
After going through multiple projects, looking for options that fit their needs and budget, and following some practical home-buying tips, the buyer’s search finally ends when they shortlist a property. A real estate closing or a house closing is one of the final steps in buying a house. The ownership of the property is then transferred to the buyer during this stage. Finally, the buyer, agent, and lender come together to complete the process of buying a flat.
Steps in Real Estate Closing
After making an offer to the seller, there are a few more steps to sail across before receiving the keys to the new home. Remember, these steps to buying a house are made after performing legal due diligence when the buyer is confident that the seller has all the required approvals and certificates. First, let us look at the house closing procedure and everything one can expect after making an offer. For someone with a first-time home-buying experience, the below-mentioned points are very important.
Home Inspection
The first step is to conduct a home inspection. Though this step is rare in India, it is still catching up with the trend. Specialised home inspectors typically undertake home inspections. These are trained individuals who look at the house in detail and point out any faults, issues, or potential problems. The inspector then submits a report to the buyer, and if there are any issues, the buyer can take that up with the seller or the builder and get it fixed.
Negotiation
This is one of the crucial aspects of the process of buying a house. Once the buyer shortlists the property, he generally puts forth an amount lower than the ‘ask price’ of the seller. However, the negotiated offer must be a smart move that the seller may not be keen on rejecting. The seller then gets back to the buyer after a few days with either accepting, rejecting or with a counter-offer. There can be multiple counter-offers before settling on the price, terms and conditions.
Earnest money
So once the buyer and the seller have settled a particular amount, it’s time to start funding for the same. The first money that a buyer gives the seller is earnest money. This money shows that the buyer is genuinely interested in purchasing the property and prohibits the seller from selling it to someone else. The earnest money may vary from deal to deal and usually is refunded in case the transaction falls off due to genuine reasons
Finalise the Purchase Agreement
The next step is to finalise the purchase agreement for the home. The agreement’s terms and conditions are decided jointly by the buyer and the seller, which helps them to move forward with the deal. During this step, there should be enough discussion about the terms and conditions of the agreement. The Buyer should go through the terms and conditions of the Agreement thoroughly before executing the same.
Down Payment
You will have to pay any deposit or down payment to banks or lending institutions before they can grant home loans for property acquisition. You most certainly already paid earnest money, which is ordinarily applied to the down payment, when you signed the purchase agreement. Check in advance to see if a cashier’s check or a wire transfer is needed for payment.
Loan application and approval
Buyers planning to buy a house by taking a loan must apply and finalise the home loan application formalities. The loan officer assists the buyer with documentation and completing the application for getting the loan approved. Getting a pre-approved loan is even better as it helps close the deal quickly and efficiently.
Conclusion
Buying a house Buying a house is one of the most critical life decisions for many individuals. The real estate closing process may be complicated, but one must take caution, be better informed, carry out adequate research and make valuable efforts to make the right decision instead of rushing with signing on the dotted line. Experience premium residences in the heart of Mumbai and around Piramal Realty. Take an e-tour to explore.
Disclaimer- This article is based on the information publicly available for general use as well as reference links mentioned herein. We do not claim any responsibility regarding the genuineness of the same. The information provided herein does not, and is not intended to, constitute legal advice; instead, it is for general informational purposes only. We expressly disclaim /disown any liability, which may arise due to any decision taken by any person/s basis the article hereof. Readers should obtain separate advice with respect to any particular information provided herein.
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