Buying a home is a major milestone in life. Some Maryland residents may have dreamed for years of owning their own home, and the time may have finally come to make the dream come true. Of course, finding the right house may seem like the hardest part of the process, but even after setting their sights on a particular home, prospective buyers still have weeks go to before closing on a home.
Closing is the process of transferring ownership from the seller of the property to the buyer. This does not happen by simply exchanging money and handing over the keys because a lot of money is at stake, and no one on either side wants to end up in a difficult position if a problem with the sale arises. As a result, potential buyers need to determine whether they will be approved for a mortgage loan for the necessary amount, and getting pre-approved even before finding the right house could help buyers know what they can afford.
Other steps involved with the closing process are
- Conducting a title search and obtaining title insurance to make sure no one can claim ownership of the property later
- Deciding who will pay closing costs, which can fall either to the buyer or the seller depending on negotiation agreements
- Having a home inspector go over the entirety of the house to ensure that no major defects exist
- Meeting any contingencies that could hold back the sale, such as obtaining financing, the seller completing repairs, the home inspection going well or others
- Depositing earnest money as gesture of good faith and intention to purchase the property
- Completing paperwork and signing various documents to conclude the sale and obtain ownership of the property
For first-time homebuyers especially, understanding the stages of closing on a home and the legal implications of various decisions during this time is vital. No one wants to end up feeling as if they were cheated while trying to purchase their first Maryland home. Fortunately, prospective homebuyers can go through this process with experienced real estate attorneys on their side to look out for the best interests of the buyers and ensure that all paperwork is in order.