There are a lot of steps that must be completed before you can take possession of your New Jersey home. Typically, several weeks will pass between the time an offer to buy a house is accepted and the time that the transaction closes. Let’s take a closer look at some of the tasks that are completed during a closing session.
You’ll sign purchase documents
The purchase agreement is an outline of the terms of the deal such as the purchase price, loan terms and other relevant details. By signing the agreement, you acknowledge the terms of the sale and agree to be bound by them. The final agreement may also contain language about what might happen if the seller engaged in fraud or if any issues arise that the seller was supposed to disclose before the closing day.
You’ll sign mortgage documents
If you’re like most people, you will finance the purchase of the house with a mortgage. Even if you can afford to pay with cash, there are benefits to getting a mortgage such as not draining your savings or liquidating a brokerage account. The mortgage documents will contain information such as the monthly payment, due date and interest rate. It will also outline what might happen if you fail to make a payment in a timely manner.
You’ll pay closing costs
Closing costs generally include the down payment on the home, document fees or sales taxes. Other taxes and fees might apply depending on the circumstances of the real estate purchase, and in some cases, it may be possible to roll them into your loan. You should receive a closing cost estimate form prior to closing that lists all the expenses and the amount that you’ll likely owe.
After a transaction closes, you agree to inherit any existing issues that the home has as well as commit to keeping the house in good condition. You will have a chance to ask any questions that you might have before signing any documents.