10 Steps to Closing

NY closing process is different than many other states. I’d like to share the typical stages and key points of the post-contract process in New York.

1 – After accepting an offer, the next step involves coordinating with attorneys to finalize the terms and execute a binding contract. The listing agent will provide your attorney with all the pertinent details. Your contract will have two dates: one for the buyer’s commitment and an “on or about” closing date. In New York, closing dates are flexible.

2 – The buyer will submit the executed contract and all of their financial documentation to their lender. This may happen right after the signed contract, or the buyers may continue to shop around a bit for the best interest rate. They are not required to submit documents to the bank by any given time so long as they produce the bank’s commitment letter by the date outlined in the contract.

3 – Once the bank has received and reviewed the buyers documents, they will contact a 3rd party to hire an appraiser. The appraiser will evaluate the property based on recent sold comparables and like features. They will be looking for the most similarities between them. They will also assess the property’s condition, which could impact various loan programs. If its a Cash Offer we skip this process

4 – The appraiser will coordinate with me to gain access. You do not need to be there. It is imperative that you treat the appraisal as a showing, so please make sure the space is as neat as possible.

5 – The appraisal can take up to 10 business days to be submitted to the lender. Sometimes buyers will share what the property appraised for and sometimes they won’t, but it won’t affect anything unless the appraised value is lower than the purchase price on the contract.

6 – Once the appraisal is in, the commitment letter should follow within 10 business days or up to two weeks.

7 – Simultaneously, the buyer’s attorney will ensure a clear title for the property, checking for violations, open permits, liens, and restrictions. The seller may need to provide documents to resolve any issues. Additionally, the buyer may order a survey to outline the property’s boundary lines.

8 – Once the commitment letter is received and title has been cleared the bank will work on clearing the buyer to close. Usually that involves updating any outdated financial information or providing extra documentation.

9 – Finally, the attorneys will schedule the closing once the lender has said that the buyer is cleared to close. Keep in mind that in NY the closing date is coordinated with 6 parties (Buyer / Seller Attorney, Buyer, Seller, Title Company and Bank Attorney. It is important to communicate with your attorney to let them know your preferred dates and times.

10 – Final walkthrough — Before the closing, the buyer will conduct a final walkthrough of the property to confirm that it is in the same condition as when they signed the contract. They will also verify that any necessary repairs from the inspection have been completed.