Homeowner's Closing Process
UPDATED: June 19, 2018
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The time period between giving a good-faith deposit check and signing the closing papers is a set time period (normally 30, 60, or even 90 days). Since your deposit check will be cashed, be sure to have sufficient funds in your account. Your deposit money will go towards the purchase price if the sale goes through. But if you back out of the deal for a reason not set forth in the contract, the seller may be entitled to keep the deposit money.
Addressing Finance and Inspection Contingencies
During the time period before the closing date, the terms of the purchase contract are addressed. The contract usually includes a financing contingency and inspection contingency, and a provision that the buyer will confirm title to the property free of defects. The inspection provision allows the buyer to have the property professionally inspected. The financing provision gives the buyer time to secure mortgage approval. Because this is often a lengthy process, the buyer should begin seeking financing immediately after the contract is signed.
A Legal Opinion on the Title Report
When you receive the title report, review it carefully. A real estate attorney's examination and review of any troublesome items in the report would be a prudent move. You want to be certain you are getting clear and marketable title to the property. And before deciding how to hold title in the property, it would be beneficial to consult an attorney familiar with ownership and estate planning issues.
Last Steps in Closing Process
During the closing period be sure to comply with any state or local ordinances that come into play in property ownership transfers. Line up homeowners insurance and schedule a final walk-through inspection to be sure the house is what it should be before taking over ownership.
Doing a timetable of dates, deadlines, and action to be taken is very helpful. Read the contract carefully. Sometimes the contract will state that failure to object is deemed approval, so the buyer needs to be "proactive" on the items before any deadline or they are waived.