The Home Loan Application Process: Closing

Before you begin the process of looking for a home to purchase, it is important for you to have a better idea of what the home loan application process is all about. Through this article, you will be provided with some basic information about the home loan application process. Specifically, in this article you will be presented with an overview of the closing process when it comes to the purchasing of a home and in obtaining a home loan.

What is the Closing?

In simple, layperson’s terms, the closing is the last step in the home buying process. The closing is the point in time when the deed to the home actually is signed over to you. It is also the point in time at which you make full payment for what is due and owing on the home pursuant to the contract for sale. This payment will include the cash that you posted as a down payment on the home and the proceeds from the home loan that you obtained to purchase the residence.

What Needs to be Done in Advance of Closing?

When it comes to what needs to be done in advance of closing, the honest, direct and simple answer is everything. The main “things” that need to be done in advance of closing on a house include:

-- obtaining a home loan

-- obtaining a title check to make sure that there are no defects or encumbrances on the title

-- obtaining title insurance

-- an appraisal of the residence

-- different physical inspections of the residence to make sure that there are no defects to the property

-- completion of any repairs to the residence that are called for within the contract for sale

There are, of course, other “things” that do need to be done during the time period following the signing of the contract for sale and the closing. However, the items that have been mentioned here are the essential and basic tasks that need to be completed and “things” that need to be obtained for the closing.

What Do You Need to Have at Closing?

To the closing, there are a number of different items that need to be present:

-- money for the purchase of the house (which will include the proceeds from the home loan)

-- proof of clear title to the property

-- the deed which will convey the property from the seller to the buyer

Finding More Information About Closing

If you desire more information after this article about real estate closings, there are some very helpful and reliable websites in operation on the Internet and World Wide Web today. In addition, there are well done books for sale at any major bookseller in the brick and mortar world on the subject of buying and selling real estate which can provide you additional information. Finally, a home loan lender as well as title insurance company will be able to provide you with in depth information about a real estate closing.