Real Estate Closings: What to Expect When Purchasing Real Estate and Using a Lender
Real Estate Closings can be time-sensitive and highly important to many. After all, purchasing real estate can mark a significant milestone for most of us. If you do not know what to expect and lack proficient professional guidance, your real estate closing can become a frustrating and never-ending process.
Continue reading to better familiarize yourself with the process of purchasing real estate through Lender financing and the importance of having real estate professionals assist with your closing.
Purchasing Real Estate Using a Lender
When purchasing real estate and using a Lender, it is important to follow the tips below:
- Obtain a pre-approval letter from a credible lending institution. (We recommend working with a reliable and experienced Mortgage Broker whose field of expertise is to shop around with different lenders to find the adequate terms for you.)
- Conduct some due diligence and look for an experienced Realtor who you can trust will represent you thoroughly throughout the process.
- Build and provide a list of criteria for the homes you are interested in viewing to your Realtor. (Be mindful that you should look for homes within your pre-approved loan amount unless you can come to closing with the difference, and please be mindful there might be a down payment and closing costs associated with your purchase.)
- Look at the homes and select the ideal one to place an offer on. Have your Realtor draft the Contract and place any additional terms or negotiations on the Contract. (Please ensure your Realtor reviews such terms of the Contract with you and that you fully understand. Our office can assist with Contract Negotiations, drafting a Real Estate Contract, and explaining its content.)
- Be sure to have a title company placed on the Contract. (In Florida, usually the Seller chooses the title company if they cover your owner’s title company, but you can suggest to use a title company of your preference, if they do not have one. Our office has a title company on-site that will be glad to serve you.)
- Have your Realtor contact the title company to introduce his/herself, provide the Contract and any applicable addendums, contact information for you and the seller, agents, and/or Lender, as well as commission information, and the escrow money deposit, if any, as addressed on the contract. (Be sure to follow the terms and deadlines placed on the Contract.) Your Realtor might want to request a preliminary settlement statement whereby most estimated closing fees are disclosed so that you are aware.
- Have your be Realtor present during any inspection of the home. (Most Lenders require a few inspections for purposes of having the home qualify for the Loan). Be aware and informed of inspection reports and/or appraisal reports as the Lender might also order an appraisal to value the property. Again, please be mindful of the inspection period on the Contract and until what day you can walk away from the Contract, in the event the inspection does not go as planned.
- Have your Realtor follow up with the Title Company to ensure all title requirements are met as required on a Title commitment for purposes of insuring the property. Also, have your Realtor provide the Home Owner Association’s information (such as contact information, account ledgers, and estoppels), if applicable, and lien search items (such as open permits/code violations, etc.).
- Ensure all items are complete with your Mortgage Broker or Lender contact representative for purposes of still qualifying for the Loan. (In other words, you have provided everything they need and you are taking care of your credit/finances.) Have your Lender reach out to the Title Company with a ‘clear to close’, when applicable.
- Continue following up with your mortgage broker/Lender contact person, Realtor, Title Company, and Seller/Listing Agent to ensure everyone is on the same page to head to a smooth closing. Have your Realtor contact the Title Company a few days before the assigned closing date to ensure all is met for purposes of moving to closing and scheduling a date/time for you to come in and sign or send a mobile notary signing agent/remote online notary to handle the closing.
***Disclaimer: This is a simplified overview of the home purchasing process and is NOT legal advice. If you have any questions or would like an attorney to oversee your transaction, please contact us to schedule a complimentary consultation ***
The Importance of Using Real Estate Professionals
It is crucial to have Real Estate Professionals such as real estate agents, brokers, and closing agents, assist you throughout the purchasing process to provide guidance and understanding. It is not enough to have a Realtor serve as your Agent.
It is important to have an experienced Real Estate Lawyer represent you, oversee the closing transaction, and advocate for your best interests – starting with contract negotiations and ending with the closing table and post-closing procedures. Let Gilbert Garcia Group, P.A. and Sapphire Title & Escrow Company provide you with a complimentary consultation and assist you with your real estate closing as you prepare to purchase real estate using a Lender. Contact us today to schedule your free consultation