Many buyers who are planning to purchase a home in California often ask us “How does the mortgage process work?”. A major part of how the mortgage process is what is known as “the closing process.”
When planning to buy a home, homebuyers can expect the following when going through the closing process.
What Is the Real Estate Closing Process for Homebuyers in California?
There are five major components of the closing process for homebuyers in California. The closing process happens at the end of the mortgage process and is key to ensuring that a homebuyers’ loan is able to fund on time.
- Title Search
The closing process for homebuyers in California begins with a title search. During a title search, a title company will review the chain of title for the property that is being purchased. Title companies need to ensure that there is a clear ownership history of the property’s title and that there are no outstanding disputes against the ownership of the home.
- Documents Sent to Escrow
After the initial title search, mortgage lenders send out their loan documents to the escrow company handling the homebuyer’s loan. This is a large part of the underwriting process; underwriters review the loan documents and request additional documents as needed to ensure the homebuyers are “clear to close.”
- Seller and Buyer Signed Documents
In California, sellers and homebuyers sign their closing documents separately. Homebuyers can expect to schedule an appointment at either their title company or with a mobile notary to sign their closing documents. Signing appointments are usually scheduled one to three days before the official closing date.
- Loan Funding
After homebuyers have signed their closing documents, the title company will send them to the lender for a final review. The lender will check the documents and make sure that everything is signed. If all the documents are in order, the lender will be able to fund the loan on the scheduled closing date.
- Closing Day
The final step in the closing process for homebuyers in California is to record their deed. Recording the property’s deed typically happens the day after funding in California. All the signed paperwork will be delivered to the government recorder’s office. Once the recording is finalized. Ownership of the property is transferred to the new homebuyers. The homebuyers are officially the new owners of their house!
Need A Home Loan In California?
This blog covers the very basics of the closing process and aims to answer the question, “how does the mortgage process work.” If you are planning to purchase a home, working with a reputable local lender can help make the home buying process smooth and quick. At JVM Lending, we have some of the best buyer education and mortgage programs with low rates available for homebuyers. You can reach our team 7-days a week either by phone at (855) 855-4491 or by email at [email protected].