The 6 Steps to Expect in the Home Closing Process

the home closing process

Prepare for your home closing process by learning each of the six stages you will go through.

The home buying process is a long one, but once you start the home closing process, you are almost ready to move in and enjoy your new home. Of course, after having made it this far, you don’t want anything to go awry during the closing process. To make sure everything goes as it should, work with an experienced closing agent to make sure the details are prepared correctly. Then, you are ready for the home closing process, which can take about 30 to 90 days and includes the following six stages. Make sure you are prepared for these steps so that you can complete it quickly and without complications. 

Select a Closing Agent

Your closing agent can be a title company, a settlement company, or an escrow company. Most real estate agents select a closing agent they know to be reliable and efficient. However, you can choose your own agent if you wish. The closing agent oversees the closing process to make sure everything happens in the right order and on time.

Create an Escrow Agreement

First, during the home closing process, a contract or escrow agreement is drafted. The closing agent will review the agreement for completeness and accuracy. The closing agent will also place your deposit into an escrow account, where it will remain until closing. 

Conduct a Title Search

Once an order for title insurance is placed, the title company will search public records. The search should identify issues with the title that would complicate your closing process. After the title search is complete, and any requirements are satisfied, the title company can provide the title insurance policy. 

Shop for Title Insurance

There are two kinds of title insurance: a lender’s policy and an owner’s policy. The owner’s policy will cover you, the homebuyer, for the amount of the home purchase price. If you are obtaining a loan, the bank or lender will often require a purchase loan policy, but that will only protect the lender. 

Obtain a Closing Disclosure Form

Your lender or closing agent must provide a Closing Disclosure to you at least three days before the consummation of the loan. The Closing Disclosure helps you understand all costs in the transaction, including the interest rate, monthly payments, and costs to close the loan. 

Prepare for Closing

The final step in the home closing process is to prepare for your move. As the closing day approaches, the closing agent will order any updated information, confirm with the lender and the seller, and set a final date, time, and location of the closing. 

Once closing day arrives, all of the behind-the-scenes work will be completed. While you complete your packing and household duties, your closing agent at Colony Title Associates will have managed the home closing process so that you can be sure your move will be effortless. 

A Title Company You Can Trust: Colony Title

At Colony Title, we will help you through the process of getting your property’s title and help you avoid the pitfalls of hidden costs while you buy your home. We are also well trained in identifying any and all errors in public records and helping you resolve them. We specialize in real estate title insurance in both Maryland and Washington, D.C., and we will perform an expert title search, check through all past documentation, and examine records for any fraud or forgery. For more information on how we can get you into the home of your dreams, contact us online or give us a call at (410) 884-1160. To get more updates on housing markets and how to get into your home, follow us on Facebook, Twitter, LinkedIn, and Google+.

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