You’re about to close on a house, congratulations! Landing a deal in this crazy market is something to be excited about. You may have also had a few head-scratching moments along the way to securing this offer and the keys aren’t yours just yet—so stay on your toes!
BNT of Texas has seen almost every kind of closing and is here to help answer a few frequently asked questions you may have about what to expect when closing on a house.
What Is Closing and When Does It Happen?
Closing is the final step before that house is finally yours! The closing date is the day you become the legal owner of your new home.
When submitting the contract, you and your agent selected a closing date, which appeared on the purchase contract. The seller accepted your offer and earnest money deposit, making this date your anticipated closing date.
If needed, your agent will work with your lender and BNT of Texas to suggest an alternate timeline that allows enough time to correctly execute the deal. This can change your closing date after an offer is formally accepted. If any changes will be needed, you and your agent will be notified immediately.
Where does the closing take place?
For your closing appointment, you’ll likely meet at a local BNT of Texas office. If there are challenges with a meeting time or location, BNT may coordinate a power of attorney to sign on your behalf or arrange for a mobile notary to facilitate the closing at an alternate location.
Who Attends the Closing?
You may or may not see the seller, as they are not required to join, but they could choose to send a lawyer or other legal representation.
You may also see:
- All purchasing parties (Signers)
- The Buyer’s real estate agent
- The Seller’s real estate agent
- Escrow Officer
- Lender(s)
- Attorneys
What Happens During Closing?
On closing day, buyers will sign between 50-100 pages of paperwork to finalize the purchase of the property. This includes property transfer documents and any loan paperwork. If the property purchase does not require a mortgage, the process will be much quicker.
The documents, such as the deed, the loan paperwork, disclosure forms, etc. will be explained to you. Don’t feel pressured to rush; take your time to read each page and don’t be afraid to ask questions.
Are There Closing Costs?
You’ve already paid an earnest money deposit at the start of the contract, but there are a few more fees before the purchase will be finalized. These costs usually include the home inspection, homeowner’s insurance, appraisal fee, and credit report charges.
Before closing day, your lender will provide you with a figure that includes:
- Down payment amount
- Prepaid interest
- Closing costs
- Required property taxes
- Prepaid homeowners insurance
What Do I Need to Bring with Me?
To make sure everything runs smoothly, you’ll need to bring a few things to your closing appointment.
- Non-expired photo ID
- Final closing payment
- Proof of homeowners insurance
I’m Buying and Selling Property, Can They Close at the Same Time?
Simultaneous closings seem efficient, but with so many different parties to the transaction, it’s usually easier to schedule them on the same day instead of at the same time.
When Do I Get the Keys?
BNT of Texas and your lender will finish the funding process. After the transfer of funds has been verified, the keys can be released. In some cases, BNT may have your keys, in other instances the keys transfer between real estate agents. Be sure to discuss the transfer of garage door openers and other security items.
If the seller is staying in the home after closing (a lease back), you may receive “rent” during this period, and the seller will transfer the keys after the agreed upon move-out date.
When Can I Move In?
If your keys have been released, you can move in! However, delays can happen. You may consider scheduling your moving date a few days after closing in case complications arise.
Should I Keep All of These Documents?
Copies of your final executed closing documents will be bound together and given to you. Your final title policy will arrive in the mail within 30 days of closing. Some documents may be needed for tax reporting purposes and your lender, if you have one, will inform you of your payment schedule. If you plan to live in your new property, you can also submit documentation for a homestead exemption.
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