6 Steps to Close Your Real Estate Purchase

If you’ve recently made a big real estate purchase, you’ve only got one more step: to close the deal. Unfortunately, this can be the longest mile. While it seems like the process is almost done, the closing phase can draw out, leaving you exhausted by the end. Fortunately, there are some ways to streamline it.

How to Close Your Real Estate Purchase: 6 Tips

Whether you’ve purchased dozens of homes before or this is your first time around, these six tips will smooth the experience:

1. Start Escrow

Escrow is a third-party account that is held on behalf of both the buyer and seller in a transaction. This functions to protect the financial interests of both parties for things like closing costs and earnest money. Opening escrow is the first thing you should do to wrap up your real estate purchase.

2. Start a Title Search

A title search ensures that the seller, and nobody else, owns the property. It prevents you from getting into hot water later with the title of the home, and ensures that nobody will be able to claim it down the road. Starting a title search helps you ensure the title is clear and ready for sale. Once you’ve started the title search, you’ll want to obtain title insurance, as well.

3. Hire a Real Estate Attorney

A real estate attorney will help give you a legal opinion and walk you through the ins and outs of a contract. While most people think they can navigate a sale without one, a real estate attorney is critical in order to protect your interests and avoid snafus from poorly-written contracts.

4. Get Pre-Approved

If you haven’t already been pre-approved for a mortgage, now is the time. Pre-approval can take several weeks, and it’ll hold up your purchase process if you don’t wrap it up early. Don’t forget to shop around for a mortgage, as different lenders offer different rates.

5. Arrange Your Closing Costs

Closing costs include the escrow company’s fees and things like administrative fees, application fees, and more. While some of these things are fixed, others (so-called “junk fees”) can be eliminated. Don’t forget to talk to your real estate agent about this possibility.

6. Hire a Home Inspection

A home inspection is critical for ensuring the home is in good shape. If it finds something drastically wrong with the home, you can request that the seller fix it before the sale closes. Be sure to have this done before you sign your closing papers.

Close Your Real Estate Purchase the Smart Way

While the closing process can be confusing, these six tips can help you navigate it seamlessly. From hiring a home inspection to completing a title search, following these six tips is a smart way to protect yourself and your investment.