Many first time homebuyers do not understand the closing process. They are uncertain of what will happen in the near future during this stressful, yet exciting, time. Real estate buyers also do not know that it is extremely beneficial to have a Walworth County real estate lawyer on their side during the closing process.
First, let’s begin with the real estate closing process. For first time homebuyers, this will serve as a guide for what is to happen in the next two months. The basics of the real estate closing process are outlined below:
1. Loan Pre-Approval. Before you even begin to look for the perfect home, you should get pre-approved for a mortgage through a financial institution. Not only is this documentation necessary during the closing process, but also will provide you a price guideline for looking at homes.
2. Offer to Purchase. Once you have toured several homes in your price range and found the perfect home for your family, you will submit an Offer to Purchase to the seller. Negotiations will take place until the buyer and seller have both agreed upon a final price and closing date, along with other terms. This results in the seller accepting your Offer to Purchase or Counteroffer. You will present the seller with “earnest money”. The earnest money is held in a third party account and shows the seller you are serious about the purchase.
3. Begin Your Loan Application. Your financial institution will be informed of the home you are wishing to purchase. Your mortgage loan to purchase the home will begin to be finalized, if approved by the bank. Many tasks take place during this process.
4. Home Inspection. If you desire, a home inspection can be performed on the house you wish to purchase. Ordinarily, the buyer pays for the home inspection. Based upon the inspection results, you can request repairs be performed on the home by the sellers.
5. Other Inspections. Other inspections can be performed on the home you are wishing to purchase. You, as the buyer, will often pay for these inspections. Some may be voluntary. Some may be required by law. Some may be required by your financial institution lending you the money. These can include: property surveys, termite inspections, radon inspections, well water testing, etc.
6. Appraisal. Your financial institution will require an appraisal of the property. You, as the buyer, will often pay for the appraisal to be performed. An appraisal ensures the value of the property justifies the loan amount.
7. Loan Finalization. The lending institution will approve your loan to purchase the home based upon the appraisal, any inspections, your income, and your credit history. You will receive a Loan Commitment letter. You may need to show this letter to the seller.
8. Title Company. A title company is selected to verify the title of the property. Your financial institution will want to make sure there are no liens attached to the home title. Most closings are held at the title company’s office. The title company will handle all money transactions during the closing. Your earnest money will be applied to the closing costs.
9. Homeowner’s Insurance. Your lending institution will require homeowner’s insurance to be carried on the property throughout the term of your mortgage.
10. Final Walk-Through. 24 hours before closing, buyers can take a final walk-through of the property. Ensure that all repairs have been made andthat all of the seller’s items are out of the home.
Why Do You Need a Walworth County Real Estate Attorney?
The closing process is a complex one. There are many reasons to hire an experienced Walworth Country real estate lawyer. Read below to learn some the major reasons.
Not all real estate transactions go smoothly. During the closing process many problems can occur. A Walworth County real estate attorney is specially trained to deal with problems that arise during the closing process.
Real estate agents use standardized forms when conducting real estate transactions. These forms are not created to cover all unexpected circumstances. What happens when a problem arises that is not covered on the standardized form? A real estate attorney is often needed.
You may need to consult with a lawyer to answer important questions. An experienced Walworth County real estate attorney can help explain and revise your Offer to Purchase or Counteroffer. Although the form may seem ample enough in its standardized form, there may be many changes to make. If the property has an addition or deck, was the construction done correctly and lawfully? If you, as the buyer, wish to build a garage or build an addition onto the property, can it be done adhering to all association and zoning laws? What happens when one of your home inspections comes back undesirable, i.e. mold, termites, radon, etc.? What if the closing goes wrong: the seller backs out, your loan doesn’t get approved, you decide not to close based on inspection results?
A Walworth County real estate attorney can also negotiate on your behalf during the purchase process. A real estate lawyer will make sure that all contracts adhere to state law. A real estate lawyer can also address any issues that might affect the future use of the property.
What happens when during your final walk-through you find repairs not made or sellers’ items still in the home? Your Walworth County real estate attorney may decide a cash “holdback” from the seller’s proceeds is in order.
A knowledgeable Walworth County real estate lawyer is necessary to review title of property. The opinion of the real estate attorney is vital in regards to title in lieu of a title policy. Do you need title insurance? Are there title exceptions? What is not covered by the title insurance? Is the legal description correct on the title? Are there any easements? Did the previous owner make any agreements or restrictions and how will those affect you after purchasing the property? Are there liens or judgments on the property? Does the seller have the legal right to sell the property? These are all instances where you will need a Walworth County real estate attorney.
Without a seasoned Walworth County real estate lawyer by your side at closing, you are relying on the title company to complete an honest and fair closing statement. Are closing costs fair? Is the deed signed properly? Do you need further explanation on some items? What if there are last minute disputes? Without a real estate lawyer, your money and rights are at risk. Only a real estate lawyer can help you with these items.
Contact Our Walworth County Real Estate Lawyer
Real estate transactions are complicated. Having legal representation during the closing process makes the best sense for your future. Our Walworth County real estate lawyer can help protect your interests, ensuring your real estate transaction is completed fair and lawfully. Contact our Walworth County real estate lawyer today. You can reach our Walworth County real estate office by phone at 262-725-0175 or by email via our website’s contact page. Wynn at Law, LLC has real estate offices located in Lake Geneva, Delavan, Salem, and Muskego.
*The content and material on this web page is for informational purposes only and does not constitute legal advice.