For most individuals, buying a home is one of the most crucial decisions they will ever make. That explains why you need to be extremely careful and diligent while planning to buy a home.

It doesn’t take a rocket scientist to know that purchasing a home, commonly referred to as closing, requires extensive research, affordable closing lawyers, and lots of paperwork. These lawyers ensure that all administrative, financial, and legal aspects of the home purchase are handled seamlessly before you receive the keys.

While you may think that a 10-step process seems a bit stretched, each of these steps has been custom-designed to protect the interests of both buyer and seller.

Let’s dive into these steps one by one:

1. Acceptance Of Offer

The journey to becoming a homeowner begins when the current owner agrees to sell at a decided price. This is the foundation for a smooth closing process, which includes determining the purchase price, timelines, and necessary contingencies. Both the buyer and seller sign a purchase agreement, confirming the transaction and defining the closing period.

2. Escrow Account Setup

Setting up an escrow account is crucial for processing the sale. This account holds the deposit amount paid by the buyer. The escrow acts as a mediator, managing funds and documenting the sale until the final payment. It safeguards the interests of both parties.

3. Title Search

A detailed search is conducted to verify the ownership history of the property. This step ensures there are no disputes, legal claims, or liens against the property. Once verified, title insurance is purchased to protect both buyer and seller from future fraudulent claims.

4. Home Inspection

A professional third party inspects the property’s condition to identify potential issues like faulty wiring, sewage clogs, or structural damage. This step allows buyers to raise concerns before closing the deal, avoiding unforeseen repair expenses.

5. Appraisal

The seller performs an appraisal to confirm that the home’s market value matches the purchase price. A reliable appraisal ensures you aren’t overpaying for the property.

6. Securing Financing

Complete the mortgage application by providing the required documentation, such as assets, debts, and income. Once approved, the lender gives the buyer a loan commitment, ensuring funds are available for the purchase.

7. Final Walkthrough

Before closing the deal, conduct a final walkthrough to ensure the property matches the purchase agreement and meets your expectations.

8. Closing Disclosure

The seller provides a closing disclosure outlining the final terms of the loan, including costs, interest rates, and conditions. Review this document carefully.

9. Signing Documents

At the closing appointment, both buyer and seller sign the necessary documents, such as the deed, mortgage, and settlement statement. This step legally transfers ownership of the property.

10. Fund Transfer

The final step involves releasing funds from escrow to the seller. With this, the property officially changes hands, marking the completion of your home-buying journey.