Residents of Stroudsburg and other areas of Pennsylvania may want to learn more about the closing of a real estate purchase. It is the process that transfers ownership of a property after there has been a contract.
According to real estate experts, awareness of these steps will help smooth the way to new ownership, whether you are buying or selling. First-time buyers will especially want to know these steps. It may take from a few days to up to 60 days, depending on the contract, terms, financing and other issues.
Open escrow with deposit of funds
An attorney with experience in transactional real estate law may be a third party, helping to uphold the terms of the contract. An earnest money deposit into an escrow account, along with the contract, is a requirement.
Title search and title insurance
This is to be sure that there are no no liens, encumbrances, or title defects that would prohibit the sale. Title insurance will be next if clear.
Inspections and property insurance quote
This is optional and is usually 14 days, which is the time to inspect the property and leave the contract, if necessary, without loosing the deposit. A request quote for property insurance should be next.
A bank or lender will order an appraisal. It must come in at the contract price or higher.
Repairs or renegotiation
If needed, the buyer can extend the closing date for repairs. If within the inspection period, the buyer can also exit.
Choose closing date
Review closing paperwork and decide on closing day. Interest rate is set during this period.
Final walk-through and closing day
Closing happens before a notary, which can be in person as well as through technology. Funds for closing are a requirement at this time.