Buying or selling a house is a significant project; you need a lot of things to ensure everything goes well. The process of buying or selling a house requires a lot of things to be achieved before changing the hands of the keys. In simple terms, it is often referred to as “closing.” It is the last step when everything is signed and the sale and purchase are completed.
The rules are different for both buying and selling. In this blog, we will help you understand what is needed to close a home in Illinois. We will guide you through everything and simplify it for everyone. No matter if you are a buyer or seller, this guide will help you out.
What Does “Closing” Mean?
The term closing often means when the transaction of a house is finalized. When someone wants to sell a house, it becomes available to the market, but once the house is sold, the sale is closed. So, the closing can be defined as the completion of the sale of a house. In the closing process, the contracts are signed, and money is exchanged. The ownership of the house is transferred along with all other legal procedures. Since closing involves a lot of technical paperwork, a lawyer is usually present at the time of closure.
What buyers should know
If you are buying a house in Illinois, there are a few important things you need to know, such as:
1. Approval of loan
If you are buying a house on a mortgage, the first thing you need to do is get your loan approved. Make sure to select the best mortgage plan that is within your budget. Provide the documentation and proof of payment to the lenders, and you will get your loan approved in no time. Without loan approval, closing is not possible.
2. The home inspection
Most clients hire an inspector to examine the condition of a property. The home inspection allows you to find out any undetected problems, such as roof leaks or water leaks. If there is a big problem, you can ask the seller to repair it or reduce the price.
3. Final Walk-Through
Before you finalize the purchase of your house, make sure to go through everything again. Ensure that all your requirements are met and the seller cannot trick you into something.
You make one last pass of the house before you close. You want to make sure everything is agreed upon. For example, if the seller agrees to correct something, it is your chance to check.
4. Bring the correct documents
On closing day, bring a photo ID, proof of homeowners insurance, and a cashier’s check or wire for your down payment and other costs.
What do the sellers need to know?
Similarly, if you are looking to sell a house, there are a few things you must know as well. Some of these are given as:
1. Get the lawyer
Sellers usually hire a legal representative’s services to help with contracts and final papers. The lawyer ensures that the sale is in accordance with state law and protects your rights.
2. Disclose Problems
Sellers must also make sure to reveal any problem that a property must have. It can be something like a leaking roof or a broken furnace. Hiding problems will lead to litigation in the future.
3. Mortgage Payment
Your mortgage should be paid before selling the house. The closing team will help ensure that this happens on the day of finalizing everything.
4. Make repairs
If you promised to repair something during the inspection, do it before the final walk-through.
5. Provide Keys and Remotes
You’ll need to give all house keys, garage remotes, and other items to the buyer after closing.
Closing
The buyer and the seller must contribute to the closing costs. These are other fees except for the price of houses. Here’s a quick breakdown of the costs:
Buyers usually pay for:
- Loan fees
- Appraisal
- Title insurance
- Attorney fees
- Recording fees
- Part of the property taxes
Sellers usually pay for:
- Real estate agent commission
- Attorney fees
- Transfer taxes
- Title and closing fees
- Unpaid property taxes
It’s smart to ask your lawyer for a full list of costs so there are no surprises.
How long does it take to close?
Closing a home in Illinois is usually 30 to 60 days after the offer. It can be longer if there is a delay in loans, problems with the title, or if the house is in need of repairs. Keep your lawyer, your real estate agent, and your creditor updated to make sure that everything works in coordination.
What happens on the final day?
Closing day is when everything comes together. Here’s what you can expect:
- Review the Closing Disclosure This is a form that shows all costs in detail. Buyers should get it three days before closing. Check it carefully.
- Sign the Papers Both buyers and sellers will sign many documents. These include the loan agreement (for buyers), the deed, and the final sales contract.
- Pay Closing Costs Buyers will pay their share, often with a wire transfer or a cashier’s check. Sellers may have their share taken out of the sale money.
- Hand Over the Keys Once everything is signed and the money is transferred, the buyer gets the keys. The home now belongs to them!
The Law Office of Elizabeth J. Ruble, LLC – Your Ideal Partner in Closing
If you need help from a professional who knows Illinois Real Estate Law and takes care of your success, call The Law Office of Elizabeth J. Ruble, LLC. The professional law firm can provide you with the following services:
- Review your contract
- Help you understand your rights.
- Check for legal problems.
- Handle the closing papers.
- Make sure the deal is fair.
Contact The Law Office of Elizabeth J. Ruble, LLC right away and close a home without any worries!
