REAL ESTATE

Six questions to ask before closing

Cindy Stanton

Answers are important, but sometimes the questions you ask matter more. In a real estate transaction, the closing process can be one of the most uncertain steps. If you’re in the process of or considering buying a property, here are six questions about the closing every buyer should ask.

When should I schedule my pre-closing inspection? Also known as the final walk-through, the pre-closing inspection typically happens two or fewer days before the closing. The purchase and sale agreement stipulates when this occurs. If the seller made repairs or improvements, allow extra time to insure the work was properly done.

What is a title search? The title search is done to inspect the property’s title for any defects or “clouds,” and is necessary to insure the title. The buyer will want a title insurance policy for themselves, known as the “owner’s policy.” The lender will require a “lender’s policy,” as well. The cost for the search is usually included in the cost of the policy. The party responsible for paying for the policy is part of the negotiation of the original offer and the terms of the binding contract.

What can I expect my closing costs to be? Your lender will advise on the total closing costs, presenting you with a “good faith estimate” which will identify all costs. A good rule of thumb is 3 percent. For planning purposes, it’s best to have the amount needed before you write your offer so that you know what concessions you may want to ask of the seller.

Who should attend the closing? All parties to the contract should attend the closing. And, of course, your Realtor.

What do I need to bring to the closing? The closing agent or attorney will ask for your driver’s license. While you will bring funds to the table, those are typically wired making it unlikely you’ll need to bring a check.

What should I get from the sellers at closing? Always ask for a key, even though it’s common for buyers to change the locks after moving in. You’ll also want to ask for mailbox keys, garage door openers and pool keys when appropriate.

One of the benefits of a Realtor is having access to questions like these, plus the many others which may arise during the transaction. Choose to be represented by a Realtor through the process to the closing table.

Cindy Stanton is president of the Greater Nashville Association of Realtors. Contact her at 615-482-2224 or cindy@cindystanton.com