Legal Steps to Take Before Closing on a Home in South Carolina

Buying a home in South Carolina is an exciting journey, but it requires careful planning and legal understanding. Before closing on your new property, there are several crucial legal steps to ensure a smooth transaction. Here are the key steps you should consider:

1. Hire a Real Estate Attorney

In South Carolina, having a real estate attorney is not just advisable; it’s often essential. An attorney can review contracts, explain terms, and ensure that your interests are protected throughout the closing process. They can also assist in title searches and help resolve any legal issues that may arise.

2. Conduct a Title Search

A title search is vital to verify that the property you’re purchasing has a clear title. You don’t want to inherit any liens, easements, or other claims against the property. Your attorney can help facilitate this search to confirm that the title is free of issues.

3. Review the Sales Contract Thoroughly

Before closing, it’s essential to review the sales contract carefully. Ensure that all terms are understood and agreeable. Pay attention to contingencies, closing dates, and any fees involved. Your attorney can help explain any confusing language and negotiate better terms if necessary.

4. Complete a Home Inspection

A thorough home inspection can uncover potential problems with the property that might not be visible at first glance. Although not a legal requirement, a good inspection can save you expensive repairs later. If issues are found, you can negotiate repairs or a reduction in price before closing.

5. Obtain a Mortgage Commitment

Prior to closing, ensure that your mortgage commitment is finalized. This document from your lender confirms the amount you can borrow and locks in the terms of your loan. Make sure all conditions are met to avoid any delays or complications at closing.

6. Verify Property Insurance

Securing homeowners insurance is a necessary step before closing on your home. Lenders typically require proof of insurance before they will fund your mortgage. Shop around for policies that offer the best coverage for your needs and budget.

7. Prepare for Closing Costs

Closing costs can add up and include a variety of fees such as attorney fees, title insurance, and lender fees. Ensure you have a clear understanding of these costs ahead of time and budget accordingly. Your attorney can provide a detailed estimate to prepare you for these expenses.

8. Review Closing Disclosure

Three days before closing, you should receive a Closing Disclosure from your lender. This document details your loan terms, interest rate, monthly payments, and closing costs. Review this carefully to ensure everything matches the initial loan estimates you were provided.

9. Final Walk-Through

Before closing, it’s advisable to do a final walk-through of the property. This inspection ensures that the home is in the agreed-upon condition and that any negotiated repairs have been completed. Address any last-minute issues with your attorney and the seller if necessary.

10. Sign the Closing Documents

At the closing meeting, you will sign various documents, including the mortgage agreement and the deed of trust. Your attorney will be present to clarify anything and ensure all legal requirements are satisfied. After signing, you will officially become the homeowner.

Taking these legal steps before closing on a home in South Carolina will help you navigate the process with confidence and security. Being proactive and informed can make all the difference in your home-buying experience.