How to Close on a Property?
Updated: Jul 16, 2021
Closing on a property seems to be one of the most facile parts of real estate investment. Little did anyone know, it is just the beginning of the actual game. When you close on a deal for a flip property, you are not halfway through the finish line just yet. It just sets the stage since there's more to look forward to when the real battle begins, as you will do a lot of nimble footwork to keep you on track.
However, whether you are a first-time flipper or not, closing on a flip property as experience is concerned is not diametrically different from each other. Well, for a first-timer, it may be overwhelming due to tons of paperwork as they don't have any experience yet, and things may be confusing and intimidating, but the first times are always one for the books. No matter how little or far you've familiarized yourself with flipping houses, it's always the journey that makes the reward worth it.
During closing, apart from the buyers and sellers, a number of people might also be present. These include but not limited to the buyer and seller's attorney (if they have), lender's representative (if applicable), real estate professional, the closing agent (title company), a notary public, other parts of the team if it's a project collaboration for investors, etc.
What Do You Do at Closing?
As mentioned above, you will sign documents associated with the property purchase. You should have reviewed the documents ahead of time to avoid any discrepancies and ensure that the documents are complete and are ready for signing for a smooth closing. Apart from getting the documents ready, you must also prepare your cashier's check to cover some of the remaining closing costs and fees. In addition, you will have to bring all of the documents you have during the home buying process along with your IDs.
During closing, make sure you understand all the terms from each document before signing. If some points are not clear and are not what you expected and agreed to, do not sign unless everything is set transparently.
When and Where a Closing is Held?
Closing preparations do not happen a day before the closing date. Whenever you close on a property, a closing date is set ahead of time to prepare all the needed documents. You can't proceed if there are lacking documents regardless if you already set the date. As for the closing location, usually, it is held at the title company's office, the lender's, or the attorney's. However, there are instances that it is held at the property itself depends on what was agreed on.
This article primarily gives you an overview of what happens during closing. Next week we will discuss "Things to consider before closing" adding a snippet of what happens after closing. Stay connected with us and together, let's celebrate this milestone!
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