Closing is the final step to owning your dream home in North Carolina. This process involves several individuals, including the buyer, seller, real estate agents, lenders, title companies and attorneys. If you are a first-time homebuyer, it is important to understand all of the steps that take place at a real estate closing to protect your rights and interests.
In the real estate world, the word “closing” is synonymous with “signing.” Hence, this is the time when you’ll review all of the documents related to your transaction and sign them.
At the closing, you will meet with a representative from the title company or lender to review both the Mortgage Note and Deed of Trust. The Mortgage Note is a legal document that lays out the terms of your loan such as how much you’ll pay each month, interest rates and more. The Deed of Trust states holds title to the property and secures it against any outstanding loans.
What’s more, you’ll review all other closing documents, such as any additional addenda for special requests or conditions related to your purchase. You’ll also receive copies of insurance policies for the home, including homeowner’s insurance, so you can start building up equity in your new home right away.
The first essential preparation for closing is to ensure you have all the necessary documents. This includes a valid form of identification and proof of funds, such as an account or bank statement showing that you have the money necessary to cover your down payment and closing costs.
Second, if you’re getting a loan for your home purchase, it’s important that you get pre-approved first. This will ensure that your financing is in place before the process starts. It also helps avoid surprises at closing.
Finally, remember that real estate closings in North Carolina require several parties involved for them to be successful. It may be helpful to know what role each person plays.
If everything goes well at closing, you will become the proud owner of your new home. It’s important to remember that closing is just the beginning of your journey as a homeowner. You’ll now be responsible for taking care of all aspects related to owning your own property and making sure that it remains in good condition.