What happens at a real estate closing?

There are several actions taken during the closing process, and homebuyers should be prepared for them to prevent delays.

After purchasing a new home in New Mexico, many buyers look forward to closing day. Otherwise referred to as settlement, this is the final step that occurs during the transaction involved with purchasing the home. The main purpose of this final step is to transfer ownership from the seller to the buyer.

Actions taken on closing day

The closing process involves a significant amount of paperwork, so buyers should be prepared for this. On closing day, the following actions will take place:

  • Either the buyer or the lender will provide a check for the amount owed towards the purchase of the new home.
  • The deed of the home is signed over to the buyer, which officially transfers ownership.
  • The title company, a lawyer or a notary will make sure the new deed gets registered with the right government office so the buyer is listed as the new homeowner.
  • Any proceeds earned from the sale will be given to the seller after their current mortgage balance and the closing costs have been paid off.

After all applicable documents have been signed and any related funds are distributed to the correct party, the seller will give the new buyer keys to the home.

Preparing for closing day

There are several steps buyers should take to ensure they are properly prepared for the closing process so there are no delays. First, buyers should review their closing disclosure form. This form outlines the terms of the loan and outlines what the mortgage payments on the loan will look like.

Second, buyers should perform a walk-through of their home 24 hours before they close on it. This ensures the previous owner has vacated and the home is in the condition that was agreed upon during negotiations. If an issue is present, buyers can delay closing until it has been rectified.

Third and finally, buyers should gather all the paperwork they need to bring to closing. This may include home inspection reports, proof of homeowners insurance, ID issued by the government and anything the bank required to approve the mortgage.

Reach out to an attorney

In many cases, it is beneficial to have a lawyer present at closing in New Mexico to ensure the process goes smoothly and all contracts are signed appropriately. Those who have yet to find a lawyer to attend closing with them before they purchase a new home should contact an attorney in their area for legal assistance.

  • New Mexico Board of Legal Specialization
  • NMLTA
  • Member of Community Associations Institute