When buying a home, the closing process can be a confusing practice that not many buyers know what all is involved in it. At Progressive Urban Real Estate, we are here to make sure that process runs as smoothly as possible and to make sure that our clients feel educated and empowered about the process as a whole. 

The closing process essentially refers to the reviewing and signing documents that ultimately lead to a buyer becoming a homeowner. During the closing process, the bulk of the time is spent signing documents transferring the property and authorizing payments.

To make things as easy as possible, here is a quick three step process to break down the steps that buyers should expect during the closing process: 

For additional context, we put together a more extensive list of what happens during closing and when the buyer finally becomes the homeowner. 

1. The home buyer will sign a variety of documents prepared by the bank and organized by the escrow / closing agent. 

Note: This closing process is usually managed by an escrow agent. An escrow agent is a third party who handles the paperwork signing, recording of the documents and funds collection and distribution.  

1. The home buyer will also wire funds for downpayment and closing costs. The amount due is sent over to the buyer prior to the closing.
2. The escrow agent confirms that the funds have been received from the buyer and that all of the documents are property signed.  The okay is then given to "file" the documents with the county recorders office officially transferring ownership from the seller to the buyer. 
3. During time the escrow agent distributes the funds to the seller and other entities owed money for work on the transaction.
4. The home buyer will be listed as the official owner of the property and becomes a homeowner!

In next week's blog post, we will detail how home buyers can best prepare for the closing process and provide some tips for clients who are planning to buy a home or already have a home that they are planning on purchasing. Have any questions regarding the purchase or closing process? Reach out to your Realtor at Progressive Urban!