Closing On A House – 5 Steps to Buying Land – Chap 5
Step Five: Closing On A House
This stage is straightforward, but the time from contract to closing on a house has some pitfalls you’ll want to avoid. Because of this keep in mind these steps as you work through the process toward closing on a home.
After you’ve signed the contract with the seller of the land, you’ll send a copy of it to your lender. Similiarly, you will also send the legal description if you haven’t already done so. Next, the lender will order the title work from the title company and hire an appraiser to determine the value, as described above in the “Financing” section.
The appraisal is usually what takes the longest, and it determines the time it will take to close on a house. Furthermore, the bank can usually close the loan within a week or less of receiving the appraisal. However, the appraisal can take anywhere from two to four weeks, sometimes longer if the land is farther away from the city where the appraisers live and work.
Sometimes a bank will have a hard time even finding an appraiser to go an hour or more from the city, which will add to the time. However, before deciding on a lender, ask about appraisal time, and talk about some worst-case scenarios. This will help make sure the lender is committed to making it as smooth a process as possible, but it will also ensure they’re transparent about what’s realistic and what’s not.
Title Work – Closing On A House
Sometimes, the title work is what takes the longest. However, this typically only happens when there is a problem, and every problem is different. Once we built a home on land had inherited by a ladies uncle. The uncle split the land and gave the pieces to his various family members. Although another family member who owned the land prior to the uncle had not written the land deed properly. Because of this there was a possibility that someone else could make a legal claim to at least part of the property our client wanted to build on. The process to clear up the problem took nine months. The title company had to hunt down about eight people to sign a document that said they released any claim to the property in question.
At the same time the appraisal and title work is going on, you or the seller will have a survey done. This is when you’ll find out if what you think you’re buying is what you’re actually buying. It’s kind of an important step.
Once the appraisal is done and the title is deemed clear by the title company. Finally, the lender has to prepare all their paperwork for closing. When they’re ready, the title company that does the closing on the home will set up a time for you, the lender, and the title company’s closer to meet and sign papers. After that, you’re a landowner!