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Closing on a House: A Step-By-Step Buyer’s Guide
The process of closing on a house is the final stretch before home ownership is transferred and the property becomes legally yours. If you’re a new homebuyer, the closing process and its various steps can be confusing and intimidating. This short guide will outline the home closing process and help simplify your final steps to home ownership.
10 Steps to Closing on a House
The closing process can vary from transaction to transaction but generally tends to follow the same basic milestones. Here are 10 major steps of the closing process you’ll need to follow to complete your home purchase.
1. Offer and Acceptance
The closing process typically begins when the seller accepts your offer to purchase the home. This agreement sets the terms, including the purchase price and any contingencies.
2. Open an Escrow Account
Escrow plays a pivotal role in the real estate closing process. An escrow account is established to hold funds and documents until the transaction is finalized. This account is managed by a neutral third party, such as an escrow agent or title company, which also manages the transfer of the property title.
3. Conduct a Title Search and Obtain Title Insurance
A title search ensures the property is free of liens or ownership disputes so you can be sure you’re buying a home with a clear title. Meanwhile, title insurance protects you from future claims against the property and covers legal costs if past owners have unresolved claims. Together, a title search and insurance provide a buyer with legal safeguards and extra peace of mind during the closing process.
4. Schedule a Home Inspection
Hire a professional inspector to evaluate the property’s condition. Address any issues identified during the inspection by negotiating repairs or price adjustments with the seller. While costly, this will save you from any unexpected repairs and expenses after closing.
5. Negotiate Closing Costs
Work with the seller to determine who will cover specific closing costs, which may include loan fees, appraisal fees, and title insurance. Always review your settlement statement thoroughly to understand what costs you’re responsible for and if any are negotiable.
6. Secure Financing
Finalize your mortgage by submitting required documents, locking in your interest rate, and obtaining loan approval. Ensure you receive a Loan Estimate and Closing Disclosure from your lender. Timelines for a mortgage approval can vary, so stay in constant communication with your lender to monitor progress and respond promptly to any additional requests they make.
7. Review All Documents
Carefully review the Closing Disclosure (or settlement statement), which outlines the final loan terms and closing costs. Pay special attention to any discrepancies in loan terms or fees to avoid unexpected expenses in the future. Verify all details are accurate and address any remaining issues immediately.
8. Conduct a Final Walk-Through
Perform a final inspection of the property within 24-48 hours before closing. Confirm the property is in the agreed-upon condition and that all negotiated repairs have been completed. Following a walk-through checklist can be a convenient way to personally check each area of the home ands its condition.
9. Attend the Closing Meeting
At the closing meeting, sign all necessary documents, including the deed, mortgage, and promissory note. Pay the remaining closing costs and down payment. Address any potential closing delays, such as remaining problems from the title search or home inspection.
10. Transfer of Ownership
Once all documents are signed and funds are transferred, the title is recorded, and ownership officially transfers to you. You’ll receive the keys to your new home and will finally be ready to begin moving in. Congratulations!
Conclusion: From Buyer to Homeowner
With the closing transaction complete, it’s time to enjoy your new home! Before putting your closing behind you, take care of any post-closing responsibilities you may still have to a third party other than your lender. Next, you’re ready to begin your transition into the next step of your journey as an official new homeowner.
Interested in closing on a house or making that first leap into home ownership but unsure where to start? Contact us today to connect with an expert real estate agent for help on your homebuying journey, or start a property search in your local area now.
How to Get a Real Estate License in Wisconsin
Are you considering embarking on a career in real estate sales in the Dairy State? First, you’ll need to become officially licensed.
A real estate license is your ticket to a rewarding realty career, opening doors to numerous opportunities. But how do you get a real estate license in Wisconsin?
In this guide, we’ll walk you through the process of how to get a real estate license in Wisconsin. From meeting eligibility criteria to passing the Wisconsin real estate license exam, we’ve got you covered. Let’s get started.
Understanding Wisconsin Real Estate Licensing Requirements
Before getting started, make sure you understand the basic licensing requirements. In Wisconsin, these are set by the Wisconsin Department of Safety and Professional Services (DSPS).
The requirements include specific education, exam, and application steps. These ensure you’re well-prepared for your real estate career.
Here’s a quick overview of the requirements:
- Be at least 18 years old
- Complete 72 hours of pre-licensing education
- Pass the Wisconsin real estate license exam
- Apply for the license with DSPS
- Find a sponsoring broker
Step 1: Meet the Eligibility Criteria
The first step is to ensure you meet the basic eligibility criteria. You must be at least 18 years old to apply for a real estate license in Wisconsin.
Also, you must have a high school diploma or equivalent. This is a standard requirement across most states.
Step 2: Complete Pre-Licensing Education
Next, you need to complete the required pre-licensing education. This is a 72-hour course approved by the DSPS and administered at a board-approved institution.
The course covers key topics like real estate law, contract law, and principles of real estate. It prepares you for the Wisconsin real estate license exam. We offer our own board-approved licensing course taken totally online and available at a discounted rate.
Upon completion of an approved course, you will receive a certificate. This is proof of your successful completion of your pre-licensing education and must be provided to DSPS when applying for your license.
Alternatively, you can also complete 10 academic semester hour credits in real estate or real estate-related law at an approved institution of higher learning.
Step 3: Register for the Wisconsin Real Estate License Exam
After completing your pre-licensing education, it’s time to register for the exam. You can do this through Pearson VUE, which the state has partnered with to administer real estate exams.
The Wisconsin exam consists of two parts: the national portion and the state-specific portion. Both parts must be passed to qualify for a license.
Remember to schedule your exam date well in advance to secure your preferred timeslot.
Step 4: Study and Pass the Wisconsin Real Estate License Test
The Wisconsin real estate license test is a comprehensive exam. It covers a wide range of topics, from property laws to ethical guidelines.
To pass, you’ll need to study diligently. Consider using study guides and practice tests to prepare. These resources can help you understand the exam format and the types of questions you’ll face.
Remember, passing the exam is a crucial step in getting your real estate license in Wisconsin. So, take your preparation seriously.
Step 5: Apply for Your Real Estate License
Once you pass the exam, it’s time to apply for your license. You’ll need to submit an application to the Wisconsin DSPS online LicensE platform.
The application process involves providing proof of your education and exam results. You’ll also need to pay the required fees.
Remember, the DSPS will review your application before issuing your real estate license, so ensure that all your information is complete and accurate.
Step 6: Choose a Sponsoring Broker
After getting your license, you’ll need to find a sponsoring broker. This broker will guide you through your early career stages.
Choose a broker who aligns with your career goals. They should offer support, training, and a conducive work environment.
If you’re interesting in joining one of the largest real estate brokerages in Wisconsin, consider earning your license with us at CENTURY 21 Affiliated.
Maintaining Your Real Estate License in Wisconsin
Once you have your license, it’s crucial to keep it active. This involves meeting certain requirements set by the DSPS and reapplying every two years.
These include:
- Completing approved continuing education courses.
- Renewing your license every two years or on every even-numbered year by December 14.
- Staying updated on changes in real estate laws and regulations.
