How to Navigate a Home Closing

How to Close on a Home In the Most Effective MannerClosing can be an exciting yet stressful time for any new home buyer, especially because most buyers have already begun mentally preparing to move into their new place. The closing period, also known as escrow, usually takes around 30 days. However, this number is by no means set in stone. If anything goes wrong during closing, the sale can be delayed by weeks or even months. Understanding the closing process can make it easier to avoid mistakes and expedite the whole process.

For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.

How Closing Works

Essentially, closing is a time for buyers and sellers to get all of their affairs in order before exiting and entering the home. If the seller turns out to have an ex-spouse who’s contesting ownership of the property, buyers need to know before the keys change hands. As buyers verify information and sellers fulfill their contingency requests, each party can examine the mechanics of the sale and ensure they feel comfortable with each step.

In addition to their real estate agent, buyers may also be assigned an escrow agent during closing. These professionals will safeguard the deed and down payment, so the paperwork and funds can be transferred at the appropriate time. This neutral party won’t take any action until the buyer feels the seller has completed their end of the bargain. During closing, buyers should feel comfortable clarifying the different points of the sale to their escrow agent. The better the relationship is, the less likely it is for something to fall through the cracks.


Lenders want buyers to pay for the following before taking control of the home:

Not all lenders have the same requirements when it comes to issuing the loan, but all lenders want to see their customers taking as much responsibility as possible for their new home. In fact, some lenders want to see buyers have these costs paid for months in advance. If buyers are required to pay the above costs prior to taking ownership, the lender will usually hold the funds in an account and then pay the bills as they arise. This is known as mortgage escrow, and its terms are usually stipulated in the fine print of the lender agreement.

Closing Requests

Buyers are still allowed to make requests during closing, especially if something unexpected occurs. So if the inspection reveals the plumbing system isn’t likely to survive another year, the buyer can either renegotiate the price of the home or back out of the sale entirely. Experts recommend buyers exercise caution during this time. Calling off the sale when both parties are near the end of the process can be frustrating at best and catastrophic at worst. A major flaw in the home is a cause for concern, but smaller issues don’t have to derail the closing process. Working with a real estate agent or a financial expert can smooth out the wrinkles during closing. The right professional can advise when to call off the deal or how to best coax a seller into agreeing to make a few last minute upgrades to the home.

Edina home buyers and sellers both spend a lot of time to make it to the closing process. Closing is the culmination of these efforts, and it’s a good time to take it slow. Knowing what to expect can make it easier to plan the next steps without wasting time.

For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.

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