February 23, 2021
What Happens at a Home Closing?
If you are like most people, nobody ever taught you what all goes into buying a home. You know that it’s a goal that most people try to achieve, but all of the details that go into it are quite a mystery. You may have to rely on people who have been there before and industry experts to help navigate you through the process, and that might be a little intimidating.
To not be completely in the dark, you have turned to internet resources to fill in the blanks. Your research may have started with a search looking for “homes for sale near me”, “buying a home in the Greenville SC area”, or “new homes near me” only to find that nothing on the market tickles your fancy. You may have gone a new route looking at “what is the cost to build a house”, “new construction homes near me”, “home builders near me”, or “home builders in Greenville SC” to open the door for a few more options.
Whatever option you choose, current inventory or to build your own house, you are going to have to arm yourself with the knowledge of the process and what is going to happen at the closing table. Going in blindly can end up costing you thousands of dollars without you even knowing it.What Should I Know About the Closing Table?Before Closing
Breathe. There are a lot of details that come together right at the end of the transaction. You might be stressing because you are not sure of how much cash to bring to the closing table, how the money exchanges hands, or when your first payment is due. It is all going to be ok. Your real estate and your loan officer will make sure you make it to the table in one piece.
Once your loan officer has received a final approval from the underwriting team, they will be able to coordinate with your title/attorney office and your agent to find a closing time that works for all parties. This single step will start the clock and put a lot of things in motion for the closing.
When the closing date is set, the timeline is put in place to finish up the last few pieces of your loan such as finalizing your prepaid items and your first payment due date. The lender and your title/attorney will start what is referred to as the balancing process. They will work together to make sure that all sides have the same numbers for fees, credits, deposits, adjustments, commissions, etc. The loan is not balanced for closing until all the numbers are correct. Once these numbers are confirmed, the exact number for the cash to close will be revealed.
Your loan officer or your agent should have discussed with you the expectations of how to present your money at closing. Some transactions will allow for a cashier’s check to be used, and others will require a wire transfer. If a wire transfer is required, you should have received your wiring instructions already with the banking details. If you are unsure how to complete a wire transfer, take the details with you to the bank. The tellers will be able to assist you with your transaction. Pro tip: Make sure the wiring is complete before you go to your closing to avoid any delays in your closing.At the Closing
When you are getting ready for your closing, you will want to make sure that you have a few things checked off your to-do list. You will want to make sure your wiring is complete, or you have your cashier’s check, you have two forms of ID, and a black pen. (Most people have pens, but sometimes the universe has a way of messing with you.) If you have all of this, then you are ready to go to your closing.
Each closing is different when it comes to who all will be in attendance. Who you need to worry about is you, anybody that is on the loan with you, and the notary that will be walking you through the paperwork?
The notary will walk you through page-by-page explaining what you see and where to sign. If you have ANY questions, ask them!! The notary should be able to provide clarity for you. If the items are loan related, they may reach out to your loan officer for assistance.
this is vital if you are purchasing a home as the transaction funds as soon as you walk away from the closing table. (If you are refinancing a home, the transaction will fund once your rescission period has ended.) You should be told when your first payment is due and when you will take possession of the home.
It is really not as intimidating as it may seem. Whether you are looking into new home construction or purchasing a home that is already built, your closing process should be about the same. Some custom home builders will offer additional incentives, but those should be included through the balancing process. (Not all custom home builders offer this but keep that in mind.)
If you are researching Greenville custom home builders or Spartanburg home builders, Enchanted Homes offers a selection of floor plans to accommodate budgets of all kinds. Their expert house builders and staff would love to help you create your dream home. Enchanted Homes, custom home builders in Spartanburg SC, have over 30 years of experience helping to make home ownership dreams come true. Check out their floor plans online or call 864-895-0601 to make an appointment today!