There are many benefits to purchasing a home with cash as opposed to taking on a mortgage. Paying cash means you won’t have to pay interest on a loan. Also, in most cases you can avoid a lot of the closing costs associated with purchasing a property, although this will differ depending on what the buyer and seller agree upon.
What Happens at a Closing?
A closing is the last step in buying a home. At the closing, you and all of the other parties involved in the transaction sign all of the necessary documents. This may include some combination of:
- Your realtor or real estate agent
- Your title and/or escrow company
- Your attorney
- The seller
- The seller’s attorney
- Your mortgage lender
Depending on the circumstances, all of the relevant parties might meet and sign the documents
at one meeting, or the closing could take weeks as signatures are collected separately. Once the closing is complete, you officially own your new home.
Breakdown of Closing Costs
Here are some of the closing costs that could still pop up during the closing process, as well as some optional costs that could still provide value to you.
- Initial Deposit (Held in Escrow)
- Appraisal
- Property Inspection
- Survey Fee
- Title Insurance
- Title Search
- Escrow Fees
- Notary Fees
- Attorney Fees
Not all of these costs will be necessary and will largely depend on what the buyer and seller feel comfortable opting out of.
Who Pays Closing Costs on a Cash Sale?
Closing fees can often be included as part of the deal. If you are purchasing a property with cash, you will usually be able to get the seller to agree to cover the closing costs. While most of the fees listed above typically fall to the buyer in one way or another, many of them can also be paid by the seller if the right agreements are reached. It all depends on your specific situation and how much you’re willing to haggle.
How Long is the Closing Process in New Jersey?
The closing process usually takes between 30 and 45 days to complete from the first steps to the final walk-through. This is a general breakdown of what steps you will take during this time period. Not every step will apply in every home sale, but in general these are the steps of the closing process. With cash offers, this process can usually be completed much quicker as there are less parties involved to tie things up.
