While buyers may be excited searching for a new home, many are not prepared for the process. Closings can be stressful. Knowing the answers to some common questions can relieve some of the anxieties about everything you need to know when closings your new home.
Buyers who are financing their purchase have 3 days prior to the closing to review any loan terms and closing costs as disclosed on the Closing Disclosure. The closing is typically set at four to eight weeks from the contract signing date. The closing sometimes referred to as a settlement, is where funds are transferred from the buyer to the seller and where title and possession of the property are turned over to the buyer from the seller.
The Final Walk-Through
Contracts normally provide that buyers are permitted to do a final walk-through of their new home within 24 hours of the closing. Buyers should carefully check all faucets, appliances, door fixtures, garbage disposals, and fans to ensure everything is in working order. If there are adverse changes following the buyer’s prior inspection of the property, buyers can request repair work following this final walk-through. If issues cannot be resolved, a delay to the closing may be necessary to settle any issues. If everything is in good working order, the next stop is the closing table.
Your agent, the seller, the seller’s agent, a representative from your title company, your loan officer, and the real estate attorney involved in the process will be invited. Most closings take place at a title company or an attorney’s office, although mail-away closings are becoming more popular and the parties sign their papers remotely..
Buyers must bring a government-issued ID, a copy of the sales contract, a homeowners insurance certificate, proof of any insurance required to close, and any closing funds must be wired prior to the closing.
Responsibility for Closing fees, as directed by the contract, often include:
- Commission fees
- A loan application fee
- An origination fee, which lenders charge for processing your loan
- The appraisal fee
- Credit report fee
- An underwriting fee, which covers the lender’s costs of researching whether to approve you for the loan
- A title search fee
- Property taxes, which are due within 60 days of the purchase
- A recording fee for filing a public land record with the courthouse.
What is Title Insurance and Why Do You Need It?
A title insurance policy protects the buyer and the lender from defects in a title and outside claims of ownership of the property. Title insurance protects the buyer from ownership claims over liens, fraudulent claims, and forged signatures.
A title company has experience performing comprehensive searches of deeds, trusts, and title to trace the history of the property and ensure there are no blemishes on a clear and marketable title.
- Lender’s title insurance is required insurance that protects the lender.
- Owner’s title insurance is optional but recommended insurance that protects the buyer. Owner’s title insurance will cover any legal fees if a buyer has to defend their own rights in court.
Florida National Title is available to help with many of your real estate needs. Florida National Title Services works under the supervision of attorneys Michele Lewis and Richard S. Weinstein experienced real estate attorneys. They work to ensure the title of the home you desire is clear and marketable and that the title insurance policy is properly issued.
Florida National Title Services provides expert title services. When you are renting, we can help with every step of the way. Florida National Title has years of experience guiding Florida homebuyers through the real estate purchase and refinance experience and has helped them solve the problems that come up in the process. We will decipher the “legalese” and explain what we need and why we need it each step of the way. The blogs to follow will address specific issues to guide buyers to understand the process better and to help them avoid many of the pitfalls. Call us at (561) 408-0729 or visit our website.
Florida National Title Services, LLC
250 S. Central Blvd., Suite 101
Jupiter, Florida 33458
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