Your home closing is fast approaching. You are understandably excited about the home purchase and are ready to change your life for the better. This may be the highlight of your year and you can’t wait for the closing day. But before you let the excitement get the best of you, there are a few more steps you need to complete before finalizing the home purchase. The following five steps can help you complete the home buying process with ease and reduce your possible headaches in the future:
Invest in a Home Inspection
Many people think home inspections are simply a waste of time and money. Since they already saw and enjoyed a tour of the property, they believe they no longer need an inspector to conduct a professional inspection of the real estate. There are even other real estate investors who would skip an inspection without seeing the property just to win the deal.
While there are ways to do this on your own, nothing can replace the verified inspections done by the pros. They can help you avoid many potential financial headaches brought about by the poor state of the property. You can use the results as your guide to check if the home purchase is worth it or not.
Home inspectors can let you know the costs of maintaining and repairing the house you plan on buying. They can tell if there are harmful materials or substances present inside the house. Since your health, safety, future finances, and peace of mind are on the line, this is one thing you should never skip during the closing process.
Buy Homeowner’s Insurance
The law may not require you to buy home insurance. But then, most lenders demand their borrowers to invest in home insurance before closing. This gives them the assurance that their investment has enough coverage in case of catastrophic damage.
Even if your lender does not require you to buy one, think of this as a great investment. You can never tell when your home will require costly repairs and maintenance in case of a fire, flood, or other incidents. With the right home insurance, you can be sure that your new investment, your belongings, and your family have enough protection.
How much you need to pay for home insurance will depend on many things. This can include your home’s location, the type of coverage you want, the value of your home, and the value of your stuff. On average, homeowners pay an annual average of $1,585 for their home insurance.
Hire a Real Estate Attorney
Not all states require home buyers to have a real estate attorney present during closing. They only require you to ensure the necessary paperwork during closing. But for your best interest, invest in the services of a local real estate attorney.
A real estate attorney can protect your rights and represent your legal interests. They can do more than help you in case you face discrimination during closing. They can also make sure to cover all the legalities so you can avoid future legal hassles.
Your attorney can help you negotiate a better deal and ensure the contract are compliant with all state laws. They can perform a title search on your behalf and tell you the best way to proceed in case of an issue. They will also file real estate deeds for you and help with a smoother property transfer.
Open an Escrow Account
Most states require you to choose a settlement company or an escrow company. An escrow is an account that holds all the money and documents until all has been settled. Once the formalities are done, they will release the documents and cash to the seller.
Opening an escrow account ensures you won’t get cheated during the transaction. You can protect your money and your lender gets the peace of mind that the home buying process is secure. Note that an escrow account can also be for homeowners needing a secure way of holding their funds of taxes and insurance.
After opening an escrow account, you need to wait for your lender’s appraisal. You will then need to approve the seller’s disclosure, push through with the home inspection and buy your homeowners insurance and title insurance. Once you and the seller sign all documents needed, your lender will send the loan funds to your escrow account so you can pay for the house.
Buying a house can be a tiring process. But now that you made it to the closing, it helps to make sure that you leave no crucial detail behind. Don’t forget to include these steps during the closing process so you can experience a smoother and less stressful home buying experience.
Provided by HomeLight Homes
