A residential real estate purchase may be the largest transaction you ever make. There are several steps in the process to be aware of, as well as challenges that can arise.
Real estate purchase process
The process beings when you find a home you want to buy and make an offer. Once the offer is accepted, you and the seller will sign a purchase agreement which outlines the terms of the sale, the purchase price and the closing date. You will likely have a home inspection and can negotiate repairs before closing.
A title company will do a title search to make sure that the title is clear, and your lender may require an appraisal to determine the property’s value. This is so the lender can ensure that the mortgage amount reflects the property’s worth.
Once you walk through the property to make sure it is still in good condition, you will receive a closing disclosure that explains the closing costs, any fees, taxes or other expenses. Then, you and the buyer will meet to close the transaction.
Challenges
Occasionally, you may face challenges with the closing that can cause a delay. It’s important that you can secure financing for the property. If your financial situation changes, it can delay the closing.
If there are issues with the title, like liens, easements or boundary disputes, it may take time to resolve those. Also, if the home inspector uncovers major issues that need to be corrected, the sale may not close until those are fixed, or you may choose to walk away from the transaction entirely.
Finally, there can be errors with the closing documents, so it’s important to review all paperwork carefully before signing.