Closings in Illinois
Having a home in Chicago Illinois is what most people desire.
Upon searching for the right one and agreeing on the said price, the final
process of purchasing is the closing process. Closings usually occur when a
potential homeowner signs the necessary documents that make the house your own.
Nonetheless, the process normally entails a list of things
that have to happen. The closing process
involves a series of steps.
Open an escrow account
It is an account that is held by a third party on behalf of
the two parties involved in the home purchase transaction. Since a lot has to
happen to complete a house sale, having a third party will prevent a potential
buyer and the seller from rip-offs. The third
party is usually neutral and thus can hold documents and money involved in the
transaction process until the process is complete.
Have a title search and get the title insurance
Obtaining a title search and title insurance provides a
legal safeguard, meaning that no other person can claim your property later. A title
officer performs the title search to ensure that the title has no clouds or
questions that may deem the property unsafe to purchase. If there are issues
that can invalidate the sale, they will have to be resolved before house
Get an attorney
If a person wishes to get a legal opinion on the closing
documents, having an attorney is one requirement. Because most individuals, be
they well educated, usually never have a complete understanding of their
closing documents; a real estate attorney will understand and know where there
are potential errors in the documents.
Pre-approval of a
Getting pre-approved is an optional requirement when closing
a deal. Nonetheless, it can help a person close the deal way faster. It is because being pre-approved will show the seller
that the buyer has a strong financial backing; this gives the buyer bargaining
power when transacting. Furthermore, being pre-approved can make lenders offer
a rate lock, meaning you can easily get an interest rate for loans. Such loans
will not be affected by an increase in interest rates before the purchase is
Negotiate your closing costs
Having an escrow account does not come free. Fees that an
individual can expect include application review fees, administrative fees,
processing fees, appraisal review fees, email, and processing fees. In addition,
the person must consider the attorney fees. The person should also make sure to
eliminate junk fees. These junk fees may occur when a company tries to take
advantage of a client because he or she
has no knowledge of the closing process. A brief research of the procedure is
Complete a home inspection
Even though it is not a requirement, not having one will be
a stupid move. If you identify problems in the home when inspecting, you can
easily back out of the deal or ask the seller to rectify or pay you to have it
rectified. This will, however, apply if a home inspection contingency is
included in the purchase offer.
Such inspection is different from the home inspection. A pest
infection will involve a specialist, who will determine if the house has wood
destroying pests. Such inspections are necessary because a small infestation
may spread and become damaging and costly to fix. The inspection issues must be
resolved before closing. In fact, mortgage companies will require that such
problems be fixed before closings. Costs associated with closing can be covered
by the buyer (if reasonable) or by the seller if they are capable of paying.
Renegotiating of the offer
During the closing process, even if the buyer’s offer has been accepted, if inspections
show problems, a person can renegotiate. A purchase price renegotiation will
reflect any costs that the buyer might incur to fix the problems. A person can
also get the seller to incur the costs of any repairs and keep the purchase
price as it was.
It is therefore important to understand the purchase
contract before closing.
Lock the interest rate.
A good lender will closely follow interest rates and advice you
to lock them when they are at a low. You can
also watch the rates.
Nonetheless, the unpredictability of interest rates may
require a person, to settle at reasonable interest rates and furthermore, one
that they can afford. Never rush to hit the lowest point.
Upon drawing up a good purchase offer with the help of a real estate lawyer or agent,
the offer must be contingent on the
Get financing at interest rates that you can
Home inspections that are devoid of any problems
The seller sharing any problems with the
Pest inspection not showing major issues or
destruction of the property
The seller carrying out all agreed repairs
In a closing process, such contingencies must be eliminated
in writing, by specific dates, which must be stated in the purchase offer
before closing. However, some contingencies may be passively approved in the
purchase offer if a person fails to lay claims before their stated deadlines.
Depositing the earnest money when signing the purchase agreement
will signal the seller that you are true to your intentions. Upon deposit, the
seller takes the property out of the market. However, when the person backs out
of the deal, the earnest money goes to the seller
and if they back out, the money goes back to the buyer.
To finalize a purchase, one will have to deposit additional
funds into escrow. The initial deposit is
applied towards the down payment; thus, the person will have to submit the
remaining down payment and pay the closing costs. However, it will only apply
if the seller will not pay for them.
Counter check the
You should go through the home one last time before signing
the closing papers. Ensure that there are no damages and everything that is in
the purchase agreement is there.
Sign the closing papers
It is one of the most important steps of closing. Make sure
that you read all the pages carefully, ensuring that the interest rate is
correct and there is no prepayment penalty. Compare the closing expense to
estimates obtained at the start of the process. In most cases, your real estate
attorney will be in charge of supervising the execution of the necessary
documents before closing.
Even though the closing
property is exciting, there exist many legal issues in real estate transactions.
Both the buyer and the seller will benefit from having real estate lawyers, as
they will take them through the entire closing process and the legal