Closing Real Estate Deals

Bonus Module

Closing a real estate deal can feel like the finish line in the buying process, but it’s also a moment where precision and planning are essential.

While it may seem like the hard part is over, there are still important steps to complete to ensure everything goes smoothly.

From understanding the closing timeline to reviewing important documents and avoiding potential pitfalls, what happens at closing can significantly impact your success as an investor.

Below, we’ll guide you through the key steps and considerations to help make your real estate closing as seamless as possible.

Let’s begin.

Table of Contents

Included below:

• Closing Real Estate Deals

• Buying Process Overview

• Closing Steps

• Not Exactly Sequential

• Review Closing Docs

• Change Utilities

• Review Closing Disclosure with Lender

• Scam Warning

• First Mortgage Payment Due

• Seller Concessions

• Verify Good Funds with the Title Company

• Estimating Cash Required with Lender

• Real Estate Agent Reviews Settlement Statements

• Tense Negotiation

• Mail Away Closing

• Power of Attorney

• Kids at Closing

• What to Bring to Closing

• Final Walkthrough

• Closing Proceeds

• Rents Collected at Closing

• Title Insurance Review

• Hold Open Title Policy

• Property Taxes

• Property Taxes on New Construction

• Two Primary Groups of Documents

• Real Estate Closing Documents

• Common Types of Deeds

• Getting a Copy of Your Deed

• Assignment of Leases

• Lease for Post-Closing Occupancy

• Real Estate Agent Attending Closing

• Financing Closing Documents

• Lenders Attending Closing

• Change Locks

• Closing Documents and Files

• Mailbox Keys

• Change of Address

• Reminder About Occupancy Fraud

• Notify Tenants

• Notify Neighbors

Buying Process Overview

Before diving into the specifics of closing, it’s important to understand where we are in the full buying process.

• First Meeting – This is where you meet with your real estate agent to discuss your goals, financing, and preferences. Your agent will use this information to help guide you through the process and setup MLS searches for properties that match your criteria.

• Pre-Showings – Get qualified with a lender. Begin reviewing properties sent via email. Analyze deals and narrow down options that align with your needs.

• Showings – You’ll visit potential properties in person to assess whether they fit your requirements and budget. This is where you begin to narrow down your choices.

• Writing Offer – Once you find a property you like, you’ll work with your agent to write an offer.

• Contract To Close – After your offer is accepted, the contract phase begins. This involves tasks such as inspections, appraisals, securing financing, and coordinating with the title company.

• Closing – The culmination of the buying process, where documents are signed, funds are exchanged, and the property officially becomes yours.

• Post Closing – After the closing, there are still steps to handle like transferring utilities, addressing any post-closing issues, and settling into your new property.

Closing Steps

When it comes to closing a real estate deal, I break it down into four major steps.

Understanding each step will help ensure a smooth closing process, minimizing any last-minute surprises.

• Prepare for Closing – This step includes making sure all required documents are in order, reviewing the closing disclosure, coordinating with the lender, and ensuring good funds are available. You'll also need to confirm any final details like closing dates and utility transfers.

• Closing "Real Estate" – This involves signing the necessary documents related to the property itself, such as the deed and settlement statements. You will officially transfer ownership from the seller to the buyer during this step.

• Closing "Financing" – This step is focused on securing the financing needed to complete the deal. You'll sign the promissory note, deed of trust, and any other loan documents. The lender will wire the funds to the title company to complete the purchase.

• Immediately After Closing – Once the closing is complete, there are still a few tasks to handle. You’ll switch utilities, ensure keys and possession are transferred, and if you’re a landlord, notify any tenants. It’s also time to confirm your first mortgage payment due date and make sure all documents are properly filed and stored.