Home buying – understanding the closing process

Most home-buyers who are closing their home ownership deal tend to neglect the importance of property closing. A home’s closing process is as important as making a deal in the early phases of the process. In every real estate buying, the ending process serves as the closure for both the buyer and seller or the buyer and the agent. Some homeowners are quite confused as to what takes place during the closing phase. So, here is a clue, closing is easy and hassle-free given that you understand what goes in it.

What is a home closing process?

In the real estate world, closing or ending a settlement process takes place during the time when the title of the residence is transferred from the previous owner to you, as the present title holder and owner. Also, this takes place once you get the go-signal from your mortgage lender. During this stage, a mortgage is usually given by the borrower to the lender in order to have a legal documentation that is more known as Deed of Trust.

Factors under home settlement procedure

During this period, there are several activities that must be done if both the buyer and seller approve of it before the last phase (closing) occurs. Generally, this includes objective appraising and assessment of the property.

Appraisal– a home appraisal takes place through the help of a certified home appraiser in order to validate the home value of the house, whether it is priced below or above its actual selling price or if it is just sold at an amount that is the same as its purchase amount.

Home inspection– doing inspections of a house these days is a prerequisite not just by the buyers but the real estate agents as well. A home inspection is a process in which a professional homeinspector performs a detailed investigation in every area of the house and then makes a report about the findings which entails the home’s problem areas (e.g. leaking pipes, broken pipes, mold, etc.) to ensure that the property is in a stable condition

Insurance – both title and home insurance are required by mortgage companies nowadays to prevent any misunderstandings along the way that also serves as both buyer and seller’s security from ownership claims and other property damages that may take place in the coming years

Title examination– this is vital to secure the buyer from purchasing a house that is not a legal property of the seller that works by letting the title company do research whether or not the home seller has an official right to move tenure of the house and if the house has existing mortgages


What are the closing costs under it?

There are certain expenses that must be taken care of before the whole home buyingprocedure ends. That means that you need to settle any escrow costs, interest rates, mortgage loans, settlement fees, and other closing related expenses.

Do you need a closing agent?

Yes, you are required to hire a closing agent. These agents are experts in this field so they know what steps are needed to make the title transfer a success. You get to walk through the whole process stress-free since you are assisted by a professional.

What happens a day before and during the day the closing?

You and the seller are given 24 hours to ensure that all legal documents are ready and valid and that the seller has evacuated the house. One day before the closing process ensues; make sure that you have the following on hand and ready: contract, confirmation of title, home insurance, mortgage indemnity, home inspection, and appraisal reports.

On the day of settlement, both parties are going to sign the closing documents that will serve as proof that both you and the seller agree to the terms and condition stated as well as consent full transfer of ownership rights to you.

Once you and the seller have completed signing all the closing documents, the home is yours! Congratulations!


Jason Vondrak

Company President

Prospect Financial Group

948 Garnet Avenue

San Diego, CA 92109

NMLS: 349089 | BRE: 01837707

Jason Vondrak has been in the mortgage industry since 2004 and co-founded the mortgage brokerage Prospect Financial Group in 2006 in San Diego, California. Today he serves as President and CEO of Prospect Financial Group and the president and founder of Prospect Property Group, a real estate development company, established in 2012.

“I’ve had the privilege to serve in an industry that exists to ensure homeownership remains among the top priorities of government and citizens alike. Over the years, it has been a pleasure working alongside homeowners, real estate professionals, and business associates combining efforts and teaming up to help homeowners realize the dream of home ownership.”