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Overview of the Home Buying and Closing Process Once You are Ready to Buy a Home in Denver
September 27, 2017
Whether you are buying your first home or fifth, you may have to familiarize yourself with the home closing process. Don’t worry, this is why you have a local realtor help you buy a home in Denver and help you every step of the way. They know all the ins and outs so you don’t have to, and will help explain everything. To help you learn and get started, learn about some of the factors to consider before deciding on a home, common terms you will hear during the home buying process, and the closing process.
Deciding on a Home
Choosing the right house is sometimes easy, while in other situations can be a challenge! First, make sure a home has more pros than cons, and checks off a majority of the items on your must-have list. Upon purchasing a home, you should expect to live there for a minimum of five years. This is why it is important to also think about long-term needs as well. A few things to consider are: How will this affect my commute to work? How do I feel about the local schools? Am I happy with the amenities of the area? Do I see myself in this home? What are the red flags and how could they be fixed? Upon answering those questions, take some time to make sure you are ready to close. Your realtor will help you make the best offer so you can act quickly once you do find the perfect home.
You will hear many words throughout your home buying and closing process. While your realtor will explain them to you, here are a few commonly used terms that will help to know. First, is appraisal. This is an estimation of a property’s overall value based on its condition. Next, is closing. While you may assume it is the final stage of the process, it is a settlement. It is the final steps of the sale where all paperwork is signed for the mortgage, deeds, and all other items. Last, is escrow. Escrow is a deed with conditions that a separate party will keep until a certain condition is met. For a full list of terms, review Home Closing 101’s real estate glossary
Once you choose a home to purchase and you and your realtor submit an offer, and it is accepted, a date will be set to close on the home. On the day of your closing, you will need to be prepared to sign a lot of paperwork. This will include all legal documentation. You will also need to pay closing costs if they were not negotiated into your deal, as well as any escrow items. You will sign your closing disclosure, mortgage documents and a certificate of occupancy if you are purchasing a new home.
As you prepare your search for a new home, the Giving Back Group will help you every step of the way. We will explain all terms to you and make sure you understand every step of the process. To get started on purchasing your next home, contact us