So you’ve made your offer and you’re ready to close on your new home. Before you sign that important paperwork, how does the closing process work?
If you’re looking to buy in the Tarheel State, read on to discover more about the North Carolina Closing process so you can be prepared.
Preparing for Closing
Before you can close on your home, the seller must agree to your terms. They can counteroffer or negotiate with you before they accept.
Once both parties agree on the specifics, the home can move towards the closing process. In North Carolina, all closings are heavily regulated by the North Carolina General Assembly and the state’s real estate commission.
This regulation is designed to protect you and ensure that the property transfer is fully legal. It protects both buyer and seller from any unsavory practices involved with a broker or real estate agent.
A procedure called pre-closing occurs once the seller accepts your offer. You will need to give the seller’s realtor an earnest money deposit. This deposit is made to show your intent to purchase.
The earnest money funds are deposited into an escrow account and will not be given to the seller until closing is complete. Next, all inspections and appraisals are conducted.
Any repair requests must be completed before you can close on the home. After everything is to your satisfaction, the pre-closing portion is complete.
Understanding North Carolina Closing Costs
Approximately three days before you close, your lender should give you a full closing disclosure. This disclosure will provide you with a breakdown of all the costs required for you to close.
The final number on the disclosure is known as “cash to close” and this will be the amount you need to bring with you on the closing date. For most transactions, the cash to close must be either by wire transfer or cashier’s check.
As a buyer, you’ll be expected to pay for a home inspection well before closing. This is to protect you and to make sure the home is in satisfactory condition.
In North Carolina Closing, you typically need to pay for land surveys as well. This cost is usually included in your final closing costs.
The escrow fees will also be due at closing and include things like a portion of your yearly property taxes. Escrow also includes any property association dues or other similar fees.
You will also pay an attorney fee for a title search. The title search ensures that your new home’s title is free and clear of any liens.
Expect to pay for a year of homeowner’s insurance in advance. Shop around to be sure you get the best rates.
There will also be fees for paperwork filing such as the cost to file the deed. Depending on your lender, you might also pay various origination and underwriting fees.
And, of course, your downpayment will be included in the amount of cash needed to close. This total will be minus the earnest money you’ve already paid.
Before your closing day, you should do a final walk-through of the property. This is your last chance to confirm that any requested repairs were made and that the home is to your satisfaction.
Always ask the seller for any receipts or invoices they have due to repairs. If you’re not sure, you can always request an additional, final home inspection for an extra charge.
It’s important to do a final walk-through inspection to ensure that the property is in the same or better condition than it was when you made your offer. This process will give you peace of mind before you move in.
The Day of Closing
Your lender or mortgage broker should give you a firm date, time, and location of your closing in advance. In North Carolina, closing must be processed by a real estate attorney. This is not always the case in every state, but it is current North Carolina Law.
Your closing will take place at that attorney’s office. Be prepared to sign quite a bit of paperwork on this day!
You should bring two forms of identification with you along with your total closing funds. The attorney will show you every piece of documentation you need to sign.
Don’t be afraid to ask them if you have any questions before you sign anything. Most are more than happy to explain the various wording and jargon on each piece of paperwork to you.
The most important thing you will sign is the new deed. The deed will be given to the local jurisdiction to be recorded and will show you as the new owner.
Once you’ve signed every piece of paper and handed over your closing costs, you’ll be given the keys to your new home! Most closing procedures are fairly quick and should take no longer than 30 minutes to an hour.
After you get your keys, you’re ready to enjoy your new place in North Carolina. Before closing, ask your realtor or lender any questions so you can be clear about the process.
Overall, closing on a home in North Carolina should be streamlined and simple. Being prepared for the big day will help you go to the closing table in confidence.
Closing is Simple
A North Carolina Closing doesn’t have to be intimidating or complicated. Once you have all the paperwork you need and you know how much money to bring with you on the big day, you’re all set to enjoy your new home.
For more information on home selling or to sell your current home for a cash offer, visit our website.