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What You Need to Know About the Closing Process

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By : Fredrica Smith    99 or more times read
Closing, escrow, settlement – these are the common names labeled for the final stage of any real estate transaction. This is where the transition of ownership of a home happens. For some buyers and sellers, they merely dispose this period as a ‘for formality’s sake’ aspect of the transaction. But a lot other participants are more keyed up during this stage rather than during the first phases of entering a deal. Note that this process must be treated just as importantly as when you enter the deal because it can make or break the finality of your buying or selling purpose.

Perhaps the main factor contributing to the presumption that the closing process is just a miscellaneous phase is the existence of computer technology. These days, everything is accessible through myriads of online sources. And even a real estate purchase deal can be closed via courier. Some buyers and sellers who both consent to signing the final papers without the presence of one another in a single room opt to send paperwork to their respective closing agents through email. This method is often preferred by investors with busy schedules, as it can cut the transaction time by half.

On the other hand, it is a very risky thing to do. There are so many cases reported wherein a particular deal was canceled due to the unexpected loss of important documents via mail. Thus, the ideal setting in an office to finalize every detail should still be pursued. If you and the other parties involved are all present in one occasion and in one place, it would be easier to place questions should anything seems amiss. Consequently, the apposite action will be pursued immediately.

If you want to speed up the process of closing escrow, encourage thoroughness for everybody. The paperwork must be submitted on time. The required payments should be paid accordingly. And the final inspection of the property before the ownership turnover must be pursued as soon as possible. By ensuring that everything is in order, and happens according to plan, then surely the transaction will be closed in no time at all.

On another note, you must as well secure the proper budget in paying for the financial demands within the settlement period. Be prepared for various closing costs, which are categorized as non-recurring and recurring fees. The first group comprises of one-time payments such as transfer taxes, endorsements, title policies and professional fees. The other expenditure is composed of monthly and/or annual fees associated with the property, like insurance plans, property taxes and prepaid interest.

Most investors who have gone through a speedy closing period had such experience as most of the closing tasks are mainly delegated to agents, from finishing paperwork to following up meetings with lenders. But the role of the buyer and seller should not be discounted. Whichever party you are, remember that the gravity of your seemingly minimal responsibilities should be handled with extreme caution.

The gravity of the consequences should you overlook minute details in the title deed, leave a page unsigned or other misstep is very detrimental. The slightest mistake could lead to canceling the transaction. The key to success then all throughout this final phase is to be very meticulous in accomplishing what needs to be done immediately. With that, your endeavor to buy or sell a home would be realized in the fastest manner possible.
The Real estate market can be an enjoyable, satisfying and lucrative experience for you. Whether you are a homeowner, a buyer, a landlord or simply a real estate enthusiast, get to know more about the latest in the real estate market now. Read more about it here: Gated Desert Highlands Real Estate, Luxury Desert Highlands Real Estate and Scottsdale AZ Scenic Real Estate.

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