If you’re going through a real estate closing, knowing the steps to take and what they entail can make the process smoother. Read this post by Louisiana Title Services Inc. in Baton Rouge, LA for more information.

The real estate closing, also known as a settlement, is the final step in a property transaction. It’s when the ownership of the property officially transfers from the seller to the buyer, and all necessary documents are signed. For first-time homebuyers or even seasoned real estate investors, the closing process can seem overwhelming. Understanding the steps involved can help you prepare and ensure everything goes smoothly. Here’s a general step-by-step guide to what happens in a real estate closing (be sure to reach out to your real estate agent or lawyer for a more in-depth look at your specific case).

Nearing a closing process? Call Louisiana Title Services Inc. in Baton Rouge, LA at (225) 769-2900 for expert guidance and assistance.

How to Go Through a Real Estate Closing Process

1. Review the Closing Disclosure

A few days before the closing, the buyer will receive a Closing Disclosure from their lender. This document outlines all the terms of the mortgage loan, including interest rates, monthly payments, and the total cost of the loan over time. It also provides a breakdown of all closing costs, such as lender fees, taxes, insurance, and title fees. Buyers should carefully review this document to ensure all the information is correct and matches what they expected. Any discrepancies should be discussed with the lender before the closing.

2. Final Walk-Through

Typically, the buyer has the right to a final walk-through of the property within 24 hours of the closing. This step ensures that the property is in the agreed-upon condition and that any repairs negotiated during the sale have been completed. It also confirms that the seller has moved out, and no new damage has occurred since the home inspection. If any issues are found during the walk-through, the buyer can request them to be resolved before closing or negotiate a credit at the closing table.

3. Signing the Paperwork

At the closing, the buyer, seller, their respective real estate agents, and sometimes attorneys will meet at a title company, real estate attorney’s office, or other designated location. This is where the bulk of the paperwork is signed. Both parties will need to provide identification and any documents requested by the lender or title company.

The buyer will sign a series of documents, including:

• The Promissory Note: This document outlines the buyer’s agreement to repay the loan.
• The Mortgage: The legal document that secures the loan and gives the lender the right to foreclose if payments aren’t made.
• Title Documents: These transfer legal ownership of the property from the seller to the buyer.

The seller will sign documents to transfer ownership, including the deed. The title company will also ensure that the property title is clear of liens and that no one else can claim ownership of the property.

Call Louisiana Title Services Inc. in Baton Rouge, LA at (225) 769-2900 to help you navigate the complexities of a real estate closing process successfully.

4. Paying the Closing Costs

Both the buyer and seller will be responsible for paying various closing costs, which are outlined in the Closing Disclosure. For the buyer, these costs can include loan origination fees, appraisal fees, title insurance, and prepaid property taxes. The seller may need to cover costs such as real estate agent commissions and prorated property taxes.

At the closing, the buyer will either bring a cashier’s check or arrange a wire transfer for the amount due, including the down payment and closing costs. It’s essential to confirm the exact amount and payment method beforehand.

5. Recording the Transaction

After all documents are signed and the funds have been transferred, the title company or attorney will handle the recording of the transaction. This involves submitting the signed deed to the county or local government to officially record the change of ownership. Once the deed is recorded, the property legally belongs to the buyer.

6. Final Steps and Receiving the Keys

Once the closing is complete and the funds have been distributed, the buyer will receive the keys to their new home. The seller has now fulfilled their part of the contract, and the buyer officially owns the property. If the property has been financed, the mortgage payments will begin as scheduled, typically within 30 days of closing.

Want to have a smooth and successful closing process? Call Louisiana Title Services Inc. in Baton Rouge, LA at (225) 769-2900 to have a trusted partner to help you out!