From Contract to Closing: The Real Estate Purchase Process
Updated: Mar 17, 2021
While we have many, many years of experience, the key to our success is closing real estate transactions smoothly and efficiently is the use of check lists developed over many years and many transactions. Checklists ensure that the little things do not get overlooked. Here is a quick list of the process from contract to consummation. Note: Every transaction is different, and tasks do not necessarily have to occur in the order presented here.
1. You have done a lot of searching, and you’ve finally found a home you are interested in. The first step is to make an offer. Your agent will help you with your negotiations with the seller and their agent. If the Buyer and Seller agree to terms, the parties execute an Offer to Purchase and Contract. Any Due Diligence fee and/or Earnest Money Deposit may be paid at this time.
2. If not already pre-approved, the Buyer should select a lender and begin the loan application process in earnest at this time.
3. The lender will order an appraisal of the property to make sure the value substantiates the agreed upon purchase price.
4. The Buyer’s real estate agent will schedule the home inspection.
5. The Buyer and Seller will negotiate any repair requests.
6. If required, the lender will order a termite inspection.
7. The Buyer’s agent will order a property survey. *Never purchase a piece of real estate without a survey.
8. The Buyer’s lender will send a title request to the closing attorney.
9. The closing attorney will perform a title search to ensure the Seller can convey clean title to the Buyer.
10. All inspections, surveys, appraisals, etc. will be completed.
11. The Buyer will obtain homeowner’s insurance and arrange to have all utilities transferred to the Buyer on the date of closing.
12. The closing attorney will prepare the Closing Disclosure and any other necessary closing documents, such as the loan documents.
13. The Buyer should arrange to have the necessary closing funds wired to the Closing Attorney prior to the day of closing.
14. On Closing Day, you will meet with the closing attorney to execute the loan documents.
15. Once funded by the lender, the Closing attorney will record the new Deed and Deed of Trust
16. Finally, the Closing Attorney will disburse the closing proceeds, including paying off the Seller’s mortgage.
17. Congrats! You now own your new home.
The above is just a brief checklist of the closing process in North Carolina. The items do not necessarily occur in the order given, but the order in which the items are completed is not nearly as important as that they be completed.
We hope this list helps you when it is time to close on your new home. If we can be of any service to you, please give us call.