The process of buying a new home in New York may involve several challenges in order to find the one that best suits your needs. Once buyers reach the closing step of home buying, they often experience confusion about their rights and responsibilities. If you are currently in the process of purchasing a home, keep these considerations in mind during closing.
Before closing
When purchasing real estate, you must complete several steps before you reach closing. If you fail to complete these steps, you could delay the closing procedures.
Prior to closing, you should complete these steps:
- Inspection of the property
- Appraisal to determine property’s worth
- Obtained homeowner’s insurance
- Completed final walkthrough of the home
Financial documentation
During closing, you will need to provide your mortgage application and approval, if applicable. You will also need to provide proof of your financial stability, which includes these documents when applicable:
- Income statements
- Asset statements
- Divorce decreet
- Bankruptcy papers
- Custody papers
Escrow
During the closing process, the lender may ask you to arrange for an escrow. Typically, the money put into escrow covers property taxes, homeowner insurance, and other costs associated with owning a home.
Closing costs
Closing costs refer to the expenses and fees you pay during closing. You must pay these fees in order to become the legal owner of the home. Closing costs range from two to five percent of the total mortgage cost. Closing costs typically include:
- Underwriting fees
- Appraisal fees
- Cost of credit report
- Title search fee
- Transfer fees
Closing timeline
The process of closing on a home can take up to 60 days. The process may take longer if you obtain more debt during the closing process or if other problems arise with your documentation or loan. Some buyers choose to use real estate lawyers to help make sure that the closing costs paperwork and procedures go as smoothly as possible.