So, you have been looking to buy a home. You have been checking out homes that you want to buy, but you’ve never closed on a home before. Use this example to see how the whole thing works.
The house is listed at $175,000, and Jack puts in an offer for $150,000. This seller decides to see if Jack will go up to $155,000. Jack agrees, and gives the seller an extra $50 to add to the deposit. Later on, this will be applied to Jack’s down payment and payments to the title company ponte vedra beach.
The real estate inspector finds that there are some electrical issues; nothing severe, but the house was a little older and thus the electrical set-up wasn’t up to current standards. As per the contract, the seller paid for the electrical wiring to be up to standards and the closing could go forward. Jack was given paperwork to prove that this had been done.
Jack and the seller finish the closing documentation, including clearing the title and title insurance to protect the seller and Jack in case something is wrong with the house that was overlooked. Jack also has to have an application in for homeowner’s insurance in order to fully secure his mortgage.
After the paperwork is filled out, Jack has to shell out more money in order to make sure that everyone gets paid as they should be. In order to finally move in, Jack has to call the utility companies and make sure he has electric and such in his name and not the seller’s.
After that is done, Jack and the seller meet on the possession date as signified on the contract. Money exchanges hands, and Jack now has a new home! He has to keep up with his payments and such, but that’s basically everything that goes into closing out a home sale.Read More