Buying a new home is often a dream turned into reality. But navigating the final steps of property ownership transfer can be a nightmare.
Understanding all the legal and financial obligations inherent in these last steps toward your ultimate goal is essential. Ultimately, the more you know about the process going in, the more you will protect yourself and your assets.
Property Ownership Transfer
There are a few steps to taking delivery of your home through the process. The steps have both legal and financial implications for the home buyer as well as the home seller. Follow the subsequent path and reach your ultimate goal.
Financing Your Dream
Before you can begin to transfer your homeownership, a fair amount of research must be done first. Try calculating your optimal mortgage financing amount to determine what you and your household can afford.
Take into account also your down payment and closing costs, as well as the cost of insurance and escrow. You must get pre-approved by a mortgage lender to lock in your interest rate.
It can feel great to make an offer but try not to get your hopes up. Many home offers fall through during due diligence.
The process includes a new home inspection as well as any necessary repairs, which can be included in the final contract. If repairs aren’t caught during due diligence, you could be responsible for them after ownership transfers. The importance of the accuracy of this step cannot be underestimated.
Transfer of Ownership
With due diligence behind you, your mortgage team will move you through the process of title and deed transfer. An appraisal will be conducted first to ensure the purchase price of the home adds up to the true value. If there are discrepancies, it’s back to the drawing board.
Be sure to have an expert look through the title and deed before signing any documentation. If anything is missing, again, you could be on the hook for unforeseen consequences.
This is perhaps the most exciting part of transferring a home. The last phase of property transfer involves a final walkthrough, moving your things, and negotiating the closing date. At the end of the closing process, the payment between lenders will be processed.
One important thing to note is that there will likely be things that break or require repair when you move into your new home. Be sure to cover yourself with insurance, plus a home warranty. That way if anything inside or outside the home fails unexpectedly, you are not paying out-of-pocket for the damage.
Enjoy What Home Has to Offer
Although property ownership transfer is an oftentimes stressful and nerve-wracking experience, it also comes with the reward of owning your own home. Knowing how to navigate the tough parts can help get you closer to reaping the reward at the end of the process.
Don’t let tricky process steps stand in your way. Seek out expert help and do ample research ahead of time to ensure you are prepared and able.