Technically, the ‘closing’ of a deal occurs when you sign the papers making the property yours. But before that happens, there are a few things you should know. A little practical knowledge about how real estate transactions work can go a long way.

1. Walk around the property

Better safe than sorry! Inspect the house one more time to make sure it is in proper condition as agreed to by all parties. During the tour, make sure that all the conditions required by the agreement, such as appliances and furniture, have been met.

2. Secure the required insurance policies

To obtain a mortgage, most lenders require the buyer to purchase a homeowner’s insurance policy. A homeowner’s insurance policy protects both the buyer and the lender, in case something happens to the house in the future.

3. Open an escrow account

An escrow account is an account maintained by a third party on behalf of both parties to a transaction. This makes things easier and more convenient, since many activities are required to complete a home sale. In addition, an escrow account is the best way to prevent the seller or buyer from committing any type of fraud, since the money and related documents are with a neutral third party.

4. Lock in your interest rates

Since interest rates are unpredictable and fluctuate multiple times a day, you should monitor interest rates and lock in if you haven’t already. Keep an eye on the market and lock in your interest when rates are lowest and most affordable.

5. Carry out the pest inspection

A pest inspection involves a specialist making sure your home is free of wood-destroying insects, such as termites or carpenter ants. Even a small termite problem can spread and destroy your entire home. Therefore, treat any minor pest problems immediately, if they exist.

6. Get title insurance

A title insurance policy is a policy that protects the buyer and the lender when there are problems with the land after the sale closes. While getting a title insurance policy, learn which policy offers the best protection for the least amount of money.

7. Consult a lawyer

It is difficult to create legal documents and confirm the laws related to the real estate market. Hiring an experienced attorney will make things easier and help you with the closing documents.

8. Renegotiate your offer

If your inspection reveals defects or faults in the property, you may want to reconsider the offer to reflect the cost of any repairs you may need to make.

9. Finalize your finances

Before you close, get all of your finances in order and make sure you have the money you need to pay for closing costs and a down payment.

10. Schedule and attend the closing

Sign the imposing paperwork and make sure both parties are present for the closing. Also, make sure the interest rate on the papers is correct and that there is no prepayment penalty. If you have retained an attorney, then he/she must be present on site with you to ensure that all paperwork is completed successfully.

Closing a real estate deal can be a tedious task, but once the deal is closed, you can breathe a sigh of relief. If you’re ever not sure what you’re doing, consult a real estate expert or lawyer for help.