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The Great Paper Trail of the Home Buying Process

One thing you will find throughout the home buying process is that just when you thought you were finished with the paperwork, there is more paperwork. Some may laugh or chuckle about this while others want to quite literally pull out their hair. There is so much paperwork involved in this process that you will at some point begin to wonder if you aren't filling out paperwork about the paperwork. The good news is that once you are ready to actually close on the house is when the real paperwork begins.

You will find that there is paperwork required in order to find out about your credit history and get your finances in order. There is paperwork involved when applying for loan pre approval. There is even more paperwork involved when you actually get around to making an offer on a house. But that is really just the beginning of the great paper trail involved in the home buying process. You'll find that much like breadcrumbs you'll be dropping bits and pieces of paper all along the path to your home ownership.

Once you've made an offer on your home you'll have papers to fill out for appraiser and inspectors and you'll be getting quite a bit of paper in return. You'll have paper coming out of your ears before you ever make it to the closing table. And once you make it to that point, you're really committed. At least it would seem so on paper.

Closing is the point at which the actual ownership of the home changes hands. This is for most people, the most exciting part of the home buying process. Now, the bad news is that this takes about two hours (minimum) of nothing more than paperwork. Go into the closing prepared for hand cramps and bring something to drink with you, as you will be there for a while. The entire closing is basically you and the previous owner or their proxy in a room going over the details that you have previously discussed and arranged, assuring that you are in complete agreement and hoping that all the details were appropriately conveyed before coming to the closing table.

Many real estate deals have been made and lost at the closing table purely as the result of minute misunderstandings. Try not to let this happen to you. If there are any problems make sure they are dealt with before closing in order to save a great deal of time, heartache, and ill will when it comes time to close.

One common problem that arises upon closing is the actual date of departure if the home is currently occupied. Many buyers would like to take possession immediately upon the close of the sale and many homeowners or renters (if the home is rented) need a little more than 24 hours notice for evacuation of the home. I know I certainly can't move that quickly. Thirty days is a somewhat standard time frame for possession of an occupied house however that can be a negotiating point and should be hashed out before closing. Some buyers put a clause in the closing papers that requires the current owners pay a penalty for each day they are late moving out. This helps greatly to establish a sense of urgency on the part of those leaving the house to get out, as the penalty fees are generally quite steep.

Don't let the paperwork involve frighten you away from the home buying process. When you think about it, a few dozen signatures is really is a small price to pay for such a great reward.