Buying a house is one of the most significant purchases most of us will ever make. It can be an exhilarating experience, filled with anticipation as well as a fair share of stress.
Understanding the process can help relieve some of that anxiety, ensuring you get the keys to your new home without unnecessary delays or complications. Here are the five essential steps for the closing process in Georgia.
Signing the contract
The closing process starts when you and the seller sign the final purchase and sale contract. This contract outlines essential terms such as the purchase price, earnest money, closing date and contingencies.
Once signed, you pay the earnest money, which a real estate agent or the closing attorney holds. The contract then goes to the closing attorney and your lender.
Home inspection
During a due diligence period, you can inspect the property thoroughly. Hiring a professional home inspector is recommended. They will then provide a detailed report on the property’s condition.
If the inspection reveals any issues, you can negotiate repairs, a price adjustment or even terminate the contract and get your earnest money back.
Property appraisal
After the due diligence period, your lender will order a property appraisal to determine its market value. If the property appraises for less than the purchase price, your lender may refuse to approve the loan.
Including an appraisal contingency in your contract can protect you in this scenario, allowing you to back out without losing your earnest money.
Title search
The closing attorney conducts a title search to ensure no impediments exist to transferring the property to you. The attorney prepares a title commitment for the lender and you, outlining the conditions for issuing title insurance.
The attorney also handles title clearance, which entails resolving any outstanding debts or liens on the property before closing.
Closing ceremony
Once your loan is cleared to close, the attorney schedules the ceremony. Three business days before closing, your lender provides a disclosure detailing your loan terms and closing costs.
Review this document carefully. At the closing ceremony, you will sign the necessary documents, and the attorney will record the deed and the lender’s security deed. The process usually takes about an hour.
Do I need an attorney to close on my house?
Yes, in Georgia, a licensed attorney must oversee the closing of all real estate transactions. Although the closing attorney often represents the lender, they will explain all documents to you and the seller and treat both parties fairly. If any issues arise, the attorney addresses them to ensure a smooth transaction.
Choosing the right real estate agent, lender and closing attorney can make all the difference. By understanding these steps and knowing what to expect, you can confidently approach the closing process, ready to enjoy your new home.