When you are selling or purchasing a home in Mississippi, real estate closing is one of the most important steps you should expect. It also can be one of the more confusing steps in the process, so it’s important to know what to expect.
What is a real estate closing?
A real estate closing is the last step in a real estate transaction, and it involves the transfer of ownership of a property from one person or entity to another. The closing date is the day that title to the property is officially transferred, and it’s also when the buyer receives the keys to the property. Here’s a more specific look at what happens during a real estate closing:
Open an escrow account and deposit funds
Escrow is a neutral third party that holds all money and documents related to the sale until the transaction is complete. The escrow officer will review all of the paperwork involved in the transaction, make sure both parties are in agreement and handle the disbursement of funds.
Review of the title
The title is a document that proves ownership of a real estate property. The closing agent will review it to make sure there are no outstanding liens or other issues that could prevent the sale from going through.
Request property insurance
The buyer will usually need to purchase property insurance before the closing. The policy will protect them against any damages that may occur after the sale.
Request repairs if necessary
If the property is in need of repairs, the buyer and seller may negotiate who will be responsible for them. The closing agent will work with both parties to get the repairs completed before the closing date.
Signing of the closing documents
The buyer and seller will both need to sign a number of closing documents, including the deed, the mortgage note and the title insurance policy.
Once all of the paperwork gets signed, the closing agent will release the funds from escrow and the property will officially get transferred to the new owner.
The closing process can seem daunting because of all the moving parts and paperwork. However, understanding what to expect beforehand can ensure that you have a smooth transaction.