The real estate closing process in Northern Virginia takes about 30-45 days and includes steps such as mortgage application, home appraisal, inspection, and title search. On closing day, documents are signed, closing costs are paid, and ownership transfers. Preparing in advance ensures a smooth process.
Main Points:
- Closing starts with an accepted offer and typically takes 30-45 days.
- Key tasks include finalizing the mortgage, scheduling an appraisal, and purchasing homeowners insurance.
- A home inspection and title search protect buyers from unforeseen issues.
- Buyers deposit earnest money and complete a final walk-through before closing day.
- The transaction is finalized on closing day when documents are signed and costs are paid.
Buying a home is a significant transaction for buyers and sellers. Home values in Northern Virginia are generally in the six-figure range (and often higher).
The closing process involves months of effort. From finding the perfect home and securing a home loan to negotiating with the seller and making it to closing day, it requires both time and effort.
People across Northern Virginia successfully complete the house-closing process every day. You shouldn’t be worried or discouraged about closing on a house — just be aware of the major stages in the process. Let’s take a closer look at what to expect during the home closing process in Northern Virginia.
Foundational Facts and Figures for the Real Estate Closing Process
The closing process is closer to a marathon than a sprint. From start to finish, it typically takes about 30-45 days.
The process begins with the seller accepting your offer, often after some negotiation over the specifics. Once a purchase and sale agreement are in place, the closing date is set, and buyers must prepare for the purchase. Here are some key tasks that buyers must complete before closing day.
Finalize the Mortgage Application
For most buyers, a mortgage loan is essential for purchasing a new home. Buyers often complete a mortgage preapproval process before submitting an offer. The next step is completing the actual mortgage application.
As Bankrate notes, buyers can return to the lender that provided thier preapproval but aren’t required to. Shopping around can help buyers save money through lower interest rates and better loan terms.
Home Appraisal
Lenders want to ensure they can protect themselves in a worst-case scenario where the buyer can’t make payments on their home loan. Therefore, they conduct home appraisals to ensure the value of the loan aligns with the value of the home. This isn’t a process that buyers have to lead, but it can significantly impact closing.
Purchase Homeowners Insurance
Lenders also protect their investments by requiring buyers to purchase homeowners insurance. In most cases, buyers can request several quotes to find the combination of cost and coverage that works best for them.
Schedule a Home Inspection
Home inspections help buyers better understand the condition of the property they want to buy, including issues that aren’t immediately visible or otherwise obvious.
If your purchase and sale agreement includes a home inspection contingency, take advantage of it. Discovering major and costly problems within a new home after the closing process means you can’t walk away from the deal or negotiate with the seller to address repair costs.
Deposit Earnest Money
An earnest money deposit signals to sellers that buyers are serious about purchasing a home. Normally, about 1-3% of the purchase price is placed in an escrow account and held there until closing. At that point, it’s used to help cover the costs of the sale for which buyers are responsible.
Complete a Title Search and Purchase Title Insurance
A title search determines if the title of a home is free from issues that would prevent a sale. Both buyers and their lenders have a clear interest in ensuring that a property can be purchased and is free from other claims of ownership — liens.
As Investopedia explains, even a title search company can miss information that would prevent a sale. Purchasing title insurance can help protect buyers if this issue arises.
Do the Final Walk-Through
Completed shortly before closing, a final walk-through provides an opportunity to ensure a home is in its expected condition.
Have the sellers removed all their personal property? Has any damage occurred since the inspection? Did the sellers complete the required repairs? The final walk-through clarifies the answers to these crucial questions.
Closing Day
On closing day, sellers and buyers meet to complete and formalize the transaction. The necessary documents are signed, buyers pay closing costs, and legal ownership officially changes hands.
A Real Estate Agent Who Helps You Get to Closing Day
Nikki Lagouros helps buyers like you in finding the perfect home in Northern Virginia. By combining deep real estate experience with a data-driven approach and a commitment to making homebuying easy and stress-free for clients, Nikki delivers a truly exceptional experience for buyers in NoVA.