What to Expect During the Closing Process

by Rita Alonso 12/27/2020

Image by mohamed Hassan from Pixabay

The last step of any home sale is the closing. This is the time when the buyer and seller sign all the documents surrounding the sale, including the documents for the buyer’s mortgage. This is when money changes hands and, in most cases, the buyer gets the keys to the home. If you’ve never attended a closing before, or it’s been a while, here’s what you can expect.

Before the Closing

Before the closing takes place, the buyer and seller will meet at the property for a final walkthrough. This gives the buyer the chance to inspect the home to make sure nothing changed in its condition between the inspection and the closing date. Buyers will look for damage to the property or items that aren’t working properly.

Who Attends the Closing

The closing is the next step. Both the buyer and seller with their respective real estate agents will be there. If anyone used a real estate attorney, that attorney will attend. A closing agent will conduct the meeting, and the lender may send a representative. Finally, someone from the title company will be in attendance.

Presenting & Signing the Documents

The main task that takes place at closing is the signing of documents. The buyers will go through about 50 to 100 pages of documents, many of which require a signature. Many of the documents are related to the buyer’s mortgage. The buyer will need to show proof of insurance, pay the closing costs, which are typically 2 to 5 percent of the home’s value, and fund the escrow, unless the seller offered to cover closing costs. Some of the documents relating to the mortgage that the buyer will need to sign include:

  • Final loan application

  • Mortgage agreement

  • Mortgage note

  • Loan estimate and closing disclosure

  • In addition to the mortgage documents, both the seller and buyer will need to sign several things, including:

  • The property’s deed

  • Bill of sale

  • Transfer tax declarations

  • At this point, any necessary payments are made, and the closing agent will write checks for the real estate agents' commissions. As long as there are no delays for funding, the keys change hands and the buyer becomes the home’s new owner.

    Potential Problems at Closing

    Most closings happen without any issues, but there are some problems that can arise on that day. It’s on the closing day that the final approval of the mortgage takes place. If the lender finds something surprising, like a change in employment or credit history, they could deny the loan. Also, title problems can pop up at closing that went undetected during negotiations. Finally, problems found during the final walkthrough could lead to delays at closing.

    Being well prepared for closing can help both buyers and sellers avoid these types of problems. With the right knowledge ahead of time, you can walk into closing confidently, knowing your real estate transaction will be completed in just a few hours.

    About the Author
    Author

    Rita Alonso

     As a native Sonoma County resident, Rita has witnessed many changes over the years. Sonoma County has invested considerable time and energy into revitalizing our downtown areas, developing mid to high end homes and constructing affordable housing, yet the warmth and small town feel of decades past still remains. We have fine restaurants and big-city entertainment, as well as great schools, including a top-notch junior college and state university, all located in the heart of Sonoma County’s wine country. This warm and friendly county is an ideal location for you and your family.

    Rita is passionate about what she does and people are her first priority. By working with a full time Real Estate Professional, who really understands the market and has a pulse on Sonoma County, you can be confident that Rita’s professionalism and community connections will lead you home.

    Buying or selling a house is a big step. Rita is committed to helping you throughout the process. You can trust that she will work with you to understand your vision and do all she can to insure that your desires are met. She is committed to meeting your needs with integrity and top-level customer service. Rita is a great negotiator and she is on your side to get the price you need to sell or the price and credits you need to buy. Please call today so that Rita Alonso can go to work for you!

    About Rita Alonso

    She is a graduate of Montgomery High, Santa Rosa Junior College and the University of San Francisco. She had worked in the mortgage industry for 10 years before getting her Real Estate license in 2004, specializing in buying and selling residential, commercial, investment properties, along with experience in short sales and bank owned properties. She is a member of the National Association of Realtors, the NorthBay Chapter of Realtors, the Women’s Council of Realtors, and the Santa Rosa Chamber of Commerce. Rita has been a Top Producer for over seven years and she has just joined a dynamic team of Top Realtors in Sonoma County called Marketing Masters. With her team, Rita can make a difference in top customer service and getting the job done.

    Rita is also the mother of two grown sons and two grandchildren and continues to enjoy being actively involved in the Sonoma County community.

    Rita’s goal is to exceed your expectations as your Realtor for life.
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    Rita Alonso
    Professional Real Estate Agent
    “Helping You See Your way Home!”
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