But it doesn't have to be that way if you've done your homework on home-buying. Because if you understand the terms, the procedures, and the reasons behind the closing process, you'll know how to be fully prepared. And things are likely to go much more smoothly and predictably.
The first thing you need to expect is the unexpected delay. Be patient?and don't get scared, panicky, and worried that the deal is falling apart. If you've got all the necessary paperwork, things will be okay. And bring your checkbook to the closing since there will be fees to pay. Some fees might require a cashier's check, so ask the people at the title company about this well in advance. You'll want to have time to take care of this at your bank. It will be the seller's responsibility to provide the deed, any recent property tax bill, and other relevant documents for the closing.
The second thing you need to expect? Lots of unfamiliar legal and financial terms. But don't let them make you uncomfortable or intimidated. Here are simple explanations of the ones you'll most likely have to sign at the closing:
The Note is the document requiring the buyer to repay the loan. It specifies the amount of the loan, the monthly payment, the interest rate, when the payment is due, and when it is legally late.
The Settlement Statement itemizes things like the purchase price, the loan amount, the cost of the transaction, and what party pays for each fee. The buyer and the seller should each get their own copy in advance. That's so each party will have enough time to review and address any concerns. This will save time at closing.
The Deed of Trust gives the lender the right to the property in the event of non-payment.
The Warranty Deed is signed by the seller. It states that the seller has transferred the Deed to the buyer.
A Rider to Deed of Trust goes into detail if the house is in a homeowners? association or is a multi-family dwelling.
The Planned Unit Development (PUD) is another term for a homeowners? association. A homeowners? association may also put a lien against the owner, but it is secondary to the lender's lien.
The Two-To-Four Rider describes the house in more detail if it is for two to four families. Anything over four units is considered commercial.
The Property Survey is required by the lender. The seller supplies it. The survey determines the property's boundaries, easements, encroachments, right of ways, and improvements. If there are any encroachments, the lender will stop the transaction. The lender then usually requires that the situation be fixed or resolved; one way to do that might be through additional title insurance coverage.
The Form 4506/8821 is usually the normal buyer-acknowledged authorization form. The lender can request a copy of the buyer's tax returns for an audit or quality-control purposes.
A Flood Determination informs the buyer if the property lies within a flood plain. The flood plain information is part of the property survey. FEMA (Federal Emergency Management Administration) is the source of the flood plain maps. If the property is within the flood plain, the buyer will need to purchase flood insurance as a condition of closing.
Hazard Insurance coverage protects the property should a catastrophe happen that involves fire or other calamities. A standard policy covers the value of the home and/or the loan amount.
The Sales Agreement or Contract of Purchase states that the seller agrees to sell and that the buyer agrees to buy the property under certain terms.
Earnest Money is offered by the buyer to take the house off the market until details of the transaction are completed. Sometimes, the offer and the transaction may fall through for reasons like inadequate financing or not coming to terms on repairs. The buyer may sometimes lose the earnest money. If the deal goes through, the earnest money is applied to the down-payment.
A Home Inspection can be ordered by the buyer; it is a report on the conditions of a house. It lists any repairs and defects.
A Name Affidavit must be signed if you have used another name or versions of your name. And you will need to show a picture ID.
Okay, so now that you know what kind of documents you might see and/or sign at the closing, congratulations! You're ready to buy that house. Just make sure to be on time for your closing. It usually will take place at the title company's office. And if there's anything you don't understand during the process, just ask. Everybody wants you to be a well-informed buyer?and a happy new homeowner.
Thank you author Malcolm Gladwell, for your exciting, revolutionary, perceptive and timely book, "The Tipping Point." His identification and description of the process that defines so many procedures in society has almost become generic, commonly used, a household term, repeated frequently everywhere. Although Gladwell did not publish this unique book as a selling manual, "The Tipping Point" is a legitimate phrase, quite accurately utilized in describing part of the selling process.
Think about each of the items that comprise the selling process: Prospecting, identification, research, questioning, presentation, handling objections and closing. Each part of the process is necessary for the success of the next. Each component is critical to the sales process yet all are useless unless an attempt to close the sale is made. If you have read this ground-breaking and popular book, you will easily identify the closing component as the aspect of the selling process known as the "Tipping Point," the point at which all of your efforts before it suddenly yield a mutually satisfying conclusion. In this case, the sale is made!
As a salesperson, whether a professional or not, do not allow the stigma so often associated with closing sales to stop you cold. You will know when you achieve the rank of "professional" when you deeply understand this simple proclamation: Too many salespeople succumb to the complexity and awe associated with the "science of closing." Learn to think of the close as simply the "Tipping Point" in the selling process. Perhaps this idea will remove some of the pressure so many salespeople experience while considering closing.
Remember that selling is actually the process of simply helping your prospect to buy. The job of the salesperson is to help clarify their need and expertly offer a product or service that meets or exceeds that uncovered need. Since many people do not like to make decisions, your job is simply to help them decide that by purchasing from you, their needs are met in a most satisfying manner. They must clearly see that the value they get from your product or service far exceeds the money that they will spend in acquiring it. At this point, the "Tipping Point" occurs and everyone gets what they want.
Professional salespeople know that that they add unique, considerable value to their products and services eventually bound for the prospective customer. They understand that "The Tipping Pont" is the point of decision in every sale where everyone wins! This is the critical point of understanding that builds their income.
Remember, closing is simply "asking for the order," nothing more. Do not be intimidated by the very thought of closing. Closing the sale is simply a logical step in the natural progression of the sales process. It is the "Tipping Point," where you realize the full return on your selling efforts. Go get 'em!
Both Paco Vielma & Daniel Sitter are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Paco Vielma has sinced written about articles on various topics from Sales and Negotiation, Home Buyers Guide and Real Estate. Find new homes for sale in the Rio Grande Valley & South Texas online at by the area's leading builders featured in the. Paco Vielma's top article generates over 33100 views. to your Favourites.
Daniel Sitter has sinced written about articles on various topics from Telemarketing, Marketing and Computers and The Internet. Daniel Sitter, author of both Learning For Profit and , has garnered extensive experience in sales, training, marketing and perso. Daniel Sitter's top article generates over 33100 views. to your Favourites.