Buying a piece of real estate can be a really exciting – yet stressful – time. When you have made an offer on a property in Rhode Island and the seller has accepted it, it’s not the end of the process. Between the time that the contract has been accepted and the closing and transfer of title occur, many other things must be properly prepared in order to prevent a more time-consuming and expensive closing process.
If a buyer is paying for the property in cash, he or she may not need to take as many steps before closing. Other buyers however must secure financing for the property. A Rhode Island real estate attorney can help with the closing process and inform you as to how you can carry out the process in a way that protects your contractual rights without costing you more money.
When a buyer is looking for financing on their property, a lender/institution will usually require him or her to have a land survey of the property prior to closing. This is most often at the expense of the buyer. But if a survey was recently conducted, it may be used or even slightly updated for less cost.
Buyers seeking financing are also sometimes required to get an appraisal of the property in order to receive a loan. Even those paying with cash may wish to do the same to ensure that the property is worth the value of the cash they are paying.
Buyers should always have a home inspection conducted prior to financing a new home. This ensures that the buyer knows that the structure of the property is healthy. Defects are often invisible to the naked eye and require a professional to take a closer look. Following the survey, appraisal, and inspection, you will receive a loan commitment letter with the terms and conditions of the loan.
After you receive the terms of the loan, you will need to purchase homeowners’ insurance in order to protect the value of both the home and the loan if a loss should occur due to negligence, natural disaster, or other issues. While homeowners’ insurance can often be costly, you can usually pay the premiums in installments along with the mortgage payment each month. This makes it much more affordable.
Then, just before closing, you will be able to take a final walk through the property to ensure that it is in the condition promised (all furniture and trash that was promised to be removed is in fact removed). You can also use this time to make sure that no other damage has occurred since the home was inspected. At closing, the buyer and their closing attorney will provide the seller and the lender’s representative with all necessary documents. Then they will pay the closing costs and sign the final contract for the sale of the home.
Palumbo Law Helps Those in Rhode Island with their Real Estate Needs
The process of closing on a real estate property can be really confusing and very detailed. This is why it’s so helpful to consult with a knowledgeable and experienced Rhode Island real estate attorney who knows the in’s and out’s of the closing process.
At Palumbo Law, our experienced Rhode Island Real Estate lawyers will walk our clients through the entire closing process. We have experience and proper contacts to ensure that you are paying an appropriate amount and are receiving a safe property as promised. To learn more or to schedule a free consultation, call us today!