What’s Involved in the Closing Process?

What’s Involved in the Closing Process?

The buying and selling of a home can be an extremely complex and drawn-out process. Depending on the market and the condition of the property, it can take months or even up to a year. The closing is the final stage, which usually takes anywhere from 30 to 90 days. This process consists of the final transactional details and involves a title company, the buyers and sellers, real estate agents, and the lender. 

For many people, the closing process is the most stressful period of a real estate transaction. Fortunately, some title companies are opting to use digital resources to provide virtual closing assistants for all parties involved. This software can act as a hub of communication and ensure everyone is on the same page. However, it still helps to understand what’s involved in the closing process. Keep reading to learn some of the integral steps. 

An Escrow Account is Created 

As the closing process gets underway, an escrow account will be created by a third party. This account will contain all the money and essential documents related to the closing. Creating the escrow account is a way to protect the buyer and seller from losing money or getting cheated during the transaction. A closing agent from the title company will review the escrow account to ensure everything’s in order. The money and document will remain in the account until the final closing. With a virtual closing assistant in place, the title company can automatically verify when a check was received and how to deliver the deposit. An AI-powered virtual closing assistant can also pull information from the title company’s system when needed by the buyers and sellers. 

Title Search and Insurance 

An important step in the closing process involves the completion of a title search and the acquisition of title insurance. This is done by the title company on behalf of the buyer. The title search involves the analysis of public records to determine if there are any liens or claims on the property. If anything is found, these issues need to be resolved before the closing. Title insurance is a type of indemnity insurance that protects the buyer from defects in the title that could result in financial loss. Title companies can benefit from a virtual closing assistant during this step. Once the title search and issuance have been completed, the virtual closing assistant can be set up to notify the appropriate parties. 

A Home Inspection 

Once a buyer puts a bid on a home, an inspection needs to be performed. It’s typically up to the buyer to schedule and pay for this. The inspector performs a thorough walk-through and generates a report. This report will outline any major issues such as foundation problems, outdated plumbing, or mold. If there are problems, the buyer can renegotiate for a lower price or ask the seller to fix the issues. A title company resource like a virtual closing assistant can inform the buyer and seller when the inspection is to take place. It can also field questions the buyer and seller may have about the home inspection.  

Final Walkthrough and Necessary Paperwork 

The last step in the closing process involves the buyer doing a final walkthrough of the home. This is necessary to ensure no damage has occurred since they last saw the house and that all required fixes have been made. Then, all the legal and closing documents should be signed. This is where a virtual closing assistant comes in handy. A virtual assistant can keep track of closing deadlines and provide all parties with the right documents.  

Ensure a Smooth Title Closing

Whether you’re a buyer, real estate agent, or title company, the smoother the closing process goes, the better. Whether you’re a buyer, seller, or an agent working with either,  working with a title company that uses a virtual closing assistant will make sure the closing process goes as smoothly as possible.

Alanna.ai develops flexible, scalable software for the title industry. To learn more, request a demo today.