Your offer to purchase has been accepted. Now what happens?
You’ve found a house to purchase and the seller has accepted your offer. Now what happens? This is when the behind the scenes work begins in preparation for the closing, which typically happens in 60 to 90 days. The following are some of the things that happen after the offer to purchase is signed.
Select a closing agent. If you are working with a real estate agent, he or she may suggest a closing agent, but you can choose your own closing agent if you wish. The closing agent oversees the closing process and makes sure everything happens correctly and on time.
Title Search is done. A title company will conduct a search of public records in order to identify any issues with title. Issues that may arise include liens against the property, utility easements, over due real estate taxes, etc. Issues that are found can be cleared up before or at the time of closing.
Title Insurance. Most lenders will require a Lender’s Policy be purchased. Remember, the Lender’s Policy only protects the lender. It is also recommended an Owner’s policy be obtained.
Set the closing date, time and location. The closing agent works with all parties involved to set the closing date, time and location. Closings are typically done at the title company’s office or at the bank, but they can be done at other locations if the parties agree.
Receive the closing disclosure. The closing disclosure is a document that shows the debits and credits of the buyer and seller. It is the breakdown of the finances involved in the transaction. A lender needs to provide the closing disclosure to the buyer three days before closing.