You’ve thoroughly gone through the real estate process. Going to open houses, finding the perfect one and price-crunching to ensure you could actually afford it are all things you’ve already successfully navigated. It’s the house of your dreams that you’ve just made an offer on. The seller might have even presented a counter offer. In the end, both parties were comfortable with the price and terms. What happens next?
Your new home is yours, immediately after closing. The new buyer and the home seller get together on this day to finalize the legal transfer of the property from former owner to current. As a new buyer, you will be handed the keys to your home once the transfer is complete.
Not too difficult, right? To ensure a proper closing, there are several key things that need to take place, in reality. By presenting a homeowner’s insurance receipt, the buyer needs to prove to their mortgage lender that they purchased insurance on the property. To prove that the price listed on the contract is what was agreed upon, the buyer and seller also have to sign paperwork to that effect. Depending on what was agreed upon, closing costs also need to be paid to the closing agent by the buyer, seller or both. Both buyer and seller must review all other relevant documents after this.
An escrow account must be established in addition to paperwork. In order for the buyer to cover things like property tax, homeowner’s insurance, interest that accrues in the interim and sometimes even private mortgage insurance, the closing agent does this. All documents associated with the property’s mortgage must then be executed via signing by the buyer. The lender can then present the closing agent with a check to cover the purchase price of the home, as agreed to in the mortgage.
The last step is to present the buyer with the home’s title and keys. Most states require that the buyer’s interest in the property be recorded at a county’s records office to ensure the buyer is the true owner of title to the property. Other people might be able to claim a stronger interest in the property in the event that the buyer opts not to record his or her interest. There have been cases where a dishonest seller got away with selling the same property to two different buyers. Some states follow a race type of statute, which determines that the first person to record title is the true property owner. The house belongs solely to the new buyer once the recording process is completed.
Serious about learning more about real estate in Colorado Springs or other homes options here in Colorado? Our real estate agents are here to support you. In addition, please consider using our complimentary info and real estate tools if you are searching for Westcliffe CO Realtors.
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