Residential Real Estate

Purchasing a home is a major financial milestone and a valuable long-term investment, and one of the most critical steps in the process is the closing. Closing is the final stage where all legal and financial obligations come together, and it’s the moment when you formally commit to your mortgage loan and take legal ownership of the property. 
 

Loans and Pre-approval of Mortgage 

Usually, the first step before finding a new home is to determine how much you can afford. The type of mortgage you select plays a major role in determining the overall cost of your home purchase. It influences several key financial factors, including your upfront expenses, monthly payment, and the total amount you’ll repay over the life of the loan. It also affects the level of financial risk you take on—for example, whether your interest rate could change over time or if your payments might increase. Understanding which loan option best fits your financial situation gives you a stronger position when speaking with lenders and helps you secure more favorable terms.

For most homebuyers, financing is a necessary part of the purchase process, making a consultation with a mortgage lender an essential early step. A qualified lender can help you understand your borrowing power, explain different loan types (such as fixed-rate, adjustable-rate, FHA, or VA loans), and guide you through the preapproval process. By taking the time to explore your financing options and determine how much you can realistically afford, you’ll be better prepared to focus your home search on properties within your budget—and avoid surprises down the road.

Find a Property

When beginning the homebuying process, it's important to take advantage of the many resources available to help you explore your options. Real estate agents play a valuable role by offering professional insights, access to listings, and guidance tailored to your needs and budget. In addition to working with an agent, you can also find useful information through online real estate platforms, local listing services, and print publications such as newspapers and real estate magazines. These sources provide details on available homes, including pricing, features, neighborhood data, and market trends.

Beyond browsing listings, it's equally important to educate yourself about the specific area where you intend to buy. Researching the community can give you a deeper understanding of factors such as school quality, commute times, local amenities, future development plans, and safety. By becoming familiar with the area, you can better define your priorities—such as whether proximity to work, access to parks, or a quieter neighborhood are most important to you. This knowledge not only empowers you to make a more informed and confident decision, but it also helps you avoid buyer’s remorse by ensuring the home you choose aligns with your lifestyle and long-term goals.

Offer and Acceptance

When you're ready to make an offer on a property, your offer includes not only the purchase price but also the terms of the sale, such as contingencies, closing timeline, and any included fixtures or furnishings. In most cases, you'll work with your real estate agent to complete an  purchase and sale agreement, which outlines these details clearly. Your agent will then submit this offer to the seller and their agent for consideration.
Once the seller receives your offer, they have several options: they may accept it as-is, in which case the property moves under contract; they may reject the offer entirely; or they may issue a counter-offer, proposing different terms or a revised price. At that point, negotiation may continue until both parties reach a mutually agreeable set of terms, or one party decides to walk away. Understanding that an offer is both a financial and strategic proposal helps you prepare for this process and work effectively with your agent to craft an offer that reflects both your interests and market conditions.

Let Your Lender Know

When purchasing a home, it’s important to understand that the total cost of financing often exceeds the actual price of the property. This is due to additional expenses such as interest over the life of the loan, closing costs, property taxes, and other related fees. While the home’s purchase price might be your primary focus at first, these added costs can significantly impact your long-term financial commitment. That’s why it's essential to carefully compare loan options—including interest rates, loan terms, and estimated closing costs—before deciding which mortgage is best for your situation.

Once you’ve evaluated your options and selected the mortgage that aligns with your financial goals, the next step is to notify the loan officer of your decision to move forward. This step is known as expressing your intent to proceed. Under federal lending regulations, a lender is not allowed to charge you certain fees—such as the application fee, appraisal fee, or other upfront charges—until you’ve officially expressed this intent. This requirement is in place to ensure you have time to review the terms of the loan and make an informed choice without being pressured by early financial obligations. Communicating your intent to proceed signals to the lender that you're ready to formally begin the loan process and complete your mortgage application.

Procure Homeowner’s Insurance

As part of the homebuying process, most lenders will require you to pay one full year of homeowner’s or property insurance premiums upfront at closing. This ensures the property is protected from the moment you take ownership. Additionally, if your mortgage includes an escrow or impound account, your lender will set it up to collect monthly payments toward property taxes and insurance premiums. These funds are held in the account and disbursed by the lender when those bills come due, helping you stay current and avoid large, lump-sum payments later on.

Close the Sale

Once you’ve made the decision to proceed with purchasing your home and have secured financing, the next step is to select a closing attorney—the professional responsible for managing the legal and financial details required to complete the transaction. This person gathers all necessary documents, checks the title to the property to ensure that the seller has good title, pays off any existing mortgages, judgments, or liens that ma cloud your title, ensures the proper signing and recording of legal forms, disburses funds, and officially closes the loan. 

During the closing, you will sign a number of important legal documents. 

• One of the most critical is the Closing Disclosure, a standardized form that outlines all the final terms of your loan and the associated costs. Your lender is legally required to provide this document at least three business days before closing to give you time to review it thoroughly.
• Another key document is the Promissory Note, which is your legal promise to repay the mortgage loan. This document details the loan amount, interest rate, repayment schedule, and consequences of default. It serves as your formal commitment to the lender.
•  You’ll also sign the Deed to Secure Debt which transfers legal interest in the property to the lender as collateral for the loan. This document reiterates the terms in the promissory note and explains your obligations as a borrower, including what happens if you fail to make payments—namely, that the lender may foreclose on the property.  

Together, these documents form the legal and financial foundation of your home purchase. Being prepared for the closing process—and understanding the purpose of each document—will help ensure a smooth and successful transition into homeownership. If you have questions during closing, don’t hesitate to consult with us or your real estate attorney for clarification.

Protect Your Title

When purchasing a home, it’s essential to protect not just the structure itself, but also your legal ownership of the property. One of the most effective ways to do this is by purchasing an owner’s title insurance policy. This type of insurance offers vital protection for your property rights, safeguarding you from unexpected claims or legal disputes related to the property's title.