When buying a house in Pennsylvania, closing is the last process you’ll go through. This is where you’ll finally transfer the agreed-upon money and get the keys to your new home. You should understand the things that happen during the closing process to prepare yourself in advance to make it easier, quicker and ensure that you don’t miss an important detail. That said, here’s the anatomy of the real estate closing process you need to know.
Purchase agreement on sale terms
When closing on real estate, you need a binding document with conditions or terms of your agreement about the property you are buying. This document must include all the important information including, an identification of the property you are buying, your identity and that of the seller, the commission of the agent (if one was involved), the price of the property, and title insurance, as well as contingencies offered.
Title examination and insurance
When buying a house in Pennsylvania, you must come to an agreement with the seller. You will forward this agreement to a title agency like escrow. Escrow acts as a mediator when buying a house where it controls the money and assets of the two parties involved (you and the seller) until you meet all the conditions on your purchase agreement.
The title agency will produce the documents on your terms of agreement showing how much you need to pay, including taxes, liens, etc., and what the seller must-do for you on the closing date. If either of you fails to meet commitments, like taking too long to pay for the house or settle the taxes, the title agency will ask you to change the closing date.
The final step in closing is where you make the necessary payments, and the seller provides the key and documents of ownership transfer. If you are using an escrow agent (highly advisable), the seller will sign the title deed before the notary and hand it to the agent, who will hold it until you wire the money.
Before you sign any papers, make sure that all the conditions you requested are met, including a home inspection. Also, you should choose a financial transaction that won’t have heavy tax consequences or affect you in the future.