Finding your next new home can be a rewarding process. If you've recently made an offer on your new home, you may be asking what's next is the home closing process. Twin City Title, your Minneapolis title insurance company, works with homeowners like you during the closing process. We guide home buyers with six main steps to your home closing as you head toward signing on the dotted line and receiving your keys.
Step # 1: Select a closing agent
Your closing agent will oversee the closing process and make sure that everything happens in the right order without any delays. Your closing agent can be a title company, escrow company, or a settlement company. Some buyers seek advice from their real estate agent who works with these companies on a regular basis.
Step # 2: Draft your escrow agreement
Once your closing agent is selected, your escrow agreement is drafted. Your closing agent will review for accuracy and completion. Your deposit will go into an escrow account where it will remain until closing.
Step # 3: Title search
A title search consists of a search of public records regarding your home's title. Title companies perform a search to identify any issues with your title like liens against your property and utility easements.
Step # 4: Shop for title insurance
Once your title search is complete, it's time to shop for title insurance. There are two types of title insurance. A lender's title insurance policy will cover the lender for the amount of your loan. The owner's title insurance policy protects the homebuyer for the amount of the purchase price. The party that pays for title insurance can be a negotiable item in your sales contract. Once purchased, your title insurance company will issue a policy for your home purchase.
Step # 5: Obtain closing disclosure
Your lender or closing agent must provide a closing disclosure at least 3 days before the consummation of your loan. This disclosure will help you understand all costs of your transaction including interest rates, monthly payments, and costs to close the loan.
Step # 6: Closing date set
Your closing agent orders any updated information that may be required. After these updates are complete, the closing agent sets your closing date, time and location after confirming with lender and seller.
Once your closing is set, you are on your way to a new home. Here at Twin City Title Company, we know that the closing process can be overwhelming. We're here to help you navigate these steps as you finalize the purchase of your new home.