Closing a house purchase is the final step in the home-buying process. It is the point at which the buyer and seller officially transfer ownership of the property, and the buyer takes possession of the home. Closing can be a complex and time-consuming process in Massachusetts, but with proper planning and preparation, it can go smoothly.
Purchase contract
The first step in closing on a house is to review and sign the purchase contract. This is a legal document that outlines the terms of the sale, including the purchase price, closing date, and contingencies. It is important to review the contract carefully and understand the terms before signing.
Secure financing
If the buyer obtains a mortgage, they will need to provide the lender with documentation such as their income and employment information, credit report and bank statements. The lender will review the information and determine the buyer’s loan eligibility and terms.
Home inspection
Once the financing is secured, the buyer will need to schedule a home inspection. This is an important step that allows the buyer to identify any potential issues with the property before closing. The inspector will review the property’s structure, systems and appliances and provide a report to the buyer.
Review title
The title is a residential real estate document that proves the seller’s ownership of the property and clear any liens, judgments or other encumbrances on the property. A title search is performed to confirm that the seller is the rightful owner of the property and that there are no outstanding issues that could affect the buyer’s ownership.
Set closing date
On the day of closing, the buyer and seller will meet with the closing agent, who will review all of the paperwork and ensure that all of the necessary documents are signed and notarized. The closing agent will also collect the appropriate funds and disburse them accordingly. Once all of the paperwork and funds have been exchanged, the closing process is complete and the buyer takes possession of the home.
It’s important to note that closing costs are an additional expense that the buyer must be aware of. Closing costs are fees that cover things like title insurance, appraisal and attorney fees. These costs are typically 2-5% of the purchase price and should be included in the purchase contract.
Buyer beware
Closing a house purchase involves reviewing and signing the purchase contract, securing financing, scheduling a home inspection, reviewing the title and finalizing the closing paperwork and funds. It is also an opportunity to ensure that the house being purchased is exactly what the two parties have agreed on.
