By Jesse McCarl
Here is what the process of closing on a house looks like in 10 easy steps. View this as a checklist, and it will make the often-arduous process of closing seem like a breeze.
Open Escrow – All your money goes to an objective third party until all terms are agreed upon and finances are cleared. To learn more about what exactly escrow is and does, click here.
Address Legal Issues – Get the title insurance cleared to prevent any legal claims down the road. You may even consider a real estate attorney, not just for the title, but for all the paperwork yet to come. To learn more about title insurance and where to buy it, click here.
Negotiate Closing Costs – First, make sure you’re not paying any unnecessary fees. A lot of services will sneak in unnecessary fees that a real estate attorney can help you flag. Then, of the remaining fees, decide who pays what. The seller usually ends up paying most of the closing costs.
Home Inspection – Hire an inspector (usually by Realtor recommendation) to check out the property.
Pest Inspection – This is a separate step from the home inspection. A professional will come out to look for termites, rodents, etc. and any damage caused by such critters. To learn more about household pests, click here.
Lock Interest Rate – With the help of a lender, lock in the lowest rate you can get before signing papers.
Address Contingencies – Make sure all terms in the original offer have been met to satisfaction.
Final Walk Thru – Walk the property one last time to ensure there’s nothing that could violate your terms. To see exactly what to check on your final walk through, click here.
Down Payment – This cash payment will be made to escrow, and later distributed to the appropriate party.
Sign Papers – Officially claim the title and take the keys to your new home!10 Steps to Closing on a House [Infographic] by HouseHunt