The process go buying a new home brings with it many questions for which we need answers and here at Nativu we care about helping you understand each of them. Therefor in this article we explain what the home closing process is and some tips that can help you through this important phase.
This last step in the home buying process is known as “closing” and begins right after the seller accepts the buying offer. At the beginning of this stage, a specific date is set to meet with the seller, the real estate agents and the rest of the interested parties.
Who is present during the closing ?
This process begins when the seller accepts, signs and returns the purchase agreement. Although this document may be slightly modified later, it is assumed that it is the final one and with this the closing can begins with the buyer, the lender, the lawyers and others.
It is important that before continuing with this stage, the home is inspected, if possible with a qualified professional, so that they can take a tour go the house and make sure that everything is in order, or to request that the problems be solved as soon as possible to continue with the closing process.
What is donde during the closing?
Once the seller accepts the offer, it must be sent to the lender so that the mortgage loan contract can begin to be signed ; However this is a process that varies according to each lender, for which a clear and immediate communication with the one chosen is very important. There is also the possibility that if the buyer does not need a mortgage loan, this step can be skipped.
After this, you have to check the approval of the mortgage loan, the final inspection of the house, the documents related to the homeowners insurance, certification of the initial payment and depending on the terms in the contract, the guarantee deposit and the mortgage payment are reviewed monthly.
Closing Day
Once all of the above is signed and agreed upon by all, the seller must send the formal closing notice with the time, date, name of the parties and location of the closing. This notice should also explain the documents each must come with along with the closing disclosure.
Finally, on the closing day, along with any down payment or other advance payments related to the purchase of the home, the closing costs must be paid, which is a percentage that is aged between the parties. This day usually done in a period of between four to six months after signing the contract, however it is until that moment that the house oficial passes to its new owner.
Here at Nativu we always recommend this to avoid any possible inconvenience;
- Carefully check that each of the documents contains only the agreements agreed with the seller.
- Take your time when making payments and money transfers, verify that all the amounts are the same as the previous agreements.
- A the final home overhaul, make sure that any necessary repairs have been fixed.
- Confirm that the property is free of previous encumbrances and that the papers regarding the financing of your mortgage are in order.
- Finally, do not make considerable changes in your finances, so that later you will not have problems with the payment of your mortgage.
The most important thing throughout this process is to be very attentive and in constant communication with all the people involved.
Make sure before closing, to have all the documentation and payments up to date, to facilitate the due diligence process: tax payments, certifications, services and condominium fees up to date, as well as the plans and legal information of the property. Have your trusted lawyer guide and support you in the process and be very clear about the conditions and price before starting the legal procedures
Irene Saravia – Nativu Escazú and Santa Ana
Since the decision to invest in a home brings with it the personal realization to a valuable project it also means a big responsibility, that why with all these tips in mind, your home closing process is likely to be over before you know it and start your new life in your new home.
