Closing on a house is a huge milestone, and it can be a little overwhelming to think about all of the things that need to happen in order for it to go smoothly. However, when you break it down into a timeline, the process is not as daunting.
Negotiating an offer
This step involves the buyer submitting an offer to the seller and negotiating any changes until both parties agree. If you’re using a real estate agent, they will likely take care of this for you. However, it’s still important to be aware of what’s going on so that you know what to expect. This process can take a few days to a few weeks depending on how quickly both parties can come to an agreement.
The earnest money deposit
Once an agreement has been reached, the buyer will need to send in an earnest money deposit. This is a percentage of the purchase price showing that the buyer is serious about purchasing the home. The earnest money deposit can vary depending on where you live and the market conditions. The deposit is typically held in an escrow account until the closing is final. This step can take place at any time once an offer has been accepted, but it’s best to do it as soon as possible so that there are no delays later on.
The home inspection
A home inspection is a crucial step in the buying process. The inspector will check to make sure the property is up to code and look for any potential problems with the house. This is a great opportunity for the buyer to get an idea of what they’re getting into and decide if they want to proceed with the purchase.
Title search and appraisal
The title search is a process where the title company reviews the property’s title history to make sure there are no outstanding issues. This is an important step to ensure that the buyer is getting the property free and clear. If the buyer discovers any problems, they will need to get fixed before the closing can take place. Additionally, the buyer will need to get an appraisal of the property. This is a calculation of how much the property is worth.
Once all of these steps have been completed, it’s time for the closing. It’s important to make sure that all of the documents are in order so that there aren’t any delays.
