Shawn DeLaat
Closing on a house is an exciting and relieving step in your journey to buying your new home. Despite this, it can be a long process that may be stressful, especially if you don’t know the different procedures.
When finishing any financial transaction, it is important to educate yourself on every detail regarding the process of said transaction; this is especially prevalent with an investment as large as the purchase of a house. In this blog, we aim to inform you of the standard home closing procedure.
Submitting An Offer
There is typically a negotiation stage, often with a few counteroffers. This is where you will hash out the amount of money you’re willing to put down for the house and how low the seller is willing to go.
The offer phase generally includes a closing date, conditions, the deposit amount, and what is included in the purchase. For example, you will need to know if any of the furniture or utilities are included in the price of the house.
Accepted Offer
This is where you’ll finally come to terms with the seller on an amount you are both satisfied with. You can use this to begin planning your future steps, such as selling your own home and procuring the money you need.
While this step may feel like the journey is finally over, you should not make any rash decisions, as there are still some steps and procedures you need to go through.
Submitting Your Deposit
A deposit shows your firm interest and commitment to buying the house and shows the seller that you are certain about the purchase of the home. The deposit is an amount you pay upfront, normally around 5-10% of the property value. It is given to the seller as part of your contract, acting as a portion of the overall price.
On purchases of more than a million dollars, the standard deposit price is closer to 20%. You should speak to your realtor on how to go about setting up and giving over this deposit.
Schedule & Conduct A Home Inspection
In this day and age, it is becoming more and more expected that with the offer of a purchase comes the condition of a full home inspection. While you may have already toured the house, this is a great opportunity to take a thorough look around the house once more, just to ensure you are getting your money’s worth.
While you can do a home inspection on your own, it is worth getting a professional realtor to do a thorough inspection of the home. By the end of the inspection, you’ll receive a full report of the property, its condition, and its appraised value. For more information about whether getting a home inspection is worth it, have a look at this article.
Talk With Your Real Estate Lawyer
At this stage in the process, you should talk to your real estate lawyer and provide them with the information they need. With the required information, real estate lawyers are allowed to conduct things like title searches, title insurance, and evaluating home insurance.
Completing The Purchase Agreement
Assuming everything has gone well up until this point, you can proceed by finalizing the purchase agreement.
At this point, the sellers know that they are going to be selling to you, and will take the home off the market. Because your contract protects you, you are now safe to make larger decisions such as preparing to sell your own home.
Firm Up Your Financing Details
Make sure that your finances are up to par and that you’re ready to pay. Talk to your mortgage provider and make sure all of your conditions have been met for your mortgage loan (if that’s the option you plan to go ahead with). Alternatively, if you are planning on paying the price upfront, figure out the best way to transfer the money to the sellers.
Satisfy Any Remaining Contingencies
As a final precaution, this phase ensures that the house is completely liveable and doesn’t need any more maintenance work before you move in. Examples of remaining contingencies include conducting a potable water test or an appraisal.
Final Walkthrough
It’s important to have a final walkthrough in regards to everything the house comes with, the details you have procured, and the price of the house you are paying for. This may seem redundant, but given how long these processes normally take, it is vital to recall and review those details before you complete the closing process.
Closing Day
The purchase of your home is now complete! You should arrange things like move-in dates, when to get your keys, and any other final steps that you need to iron out with the sellers. Once that’s done, get yourself a moving van and prepare for moving day!
Buying A Home In the Niagara Region? Call Davids & DeLaat today!
If you are looking to purchase a home in the Niagara Region, reach out to Davids & DeLaat! We have ample experience helping clients in the Niagara Region with all of their real estate needs. To find out how we can help you, contact us today!
