T
he National Association of Realtors (NAR) has released a new consumer guide that sheds light on the often-mysterious steps between signing and closing a home purchase. This phase of the transaction can be overwhelming for first-time buyers, who may not know what to expect after their offer is accepted.

    To address this knowledge gap, NAR's latest guide covers the essential tasks that occur before closing, including escrow, pre-closing requirements, appraisals, and inspections. The guide explains how escrow works, what goes into the account, and the importance of earnest money and property documents.

    For buyers who are financing their purchase, the guide outlines key lender requirements, such as getting an appraisal, conducting a title search, and obtaining homeowners insurance. It also notes that buyers may need to consider specialized insurance options, like flood or earthquake insurance, depending on their location.

    The guide emphasizes the importance of understanding the difference between appraisals and inspections, which can be confusing for first-time buyers. NAR recommends connecting buyers with trustworthy inspectors and other professionals involved in the home-purchase process.

    To help buyers manage expectations, the guide provides a realistic timeline of the transaction and suggests mapping out a plan to ensure a smooth closing process. On closing day, buyers should have their down payment ready and be prepared to sign numerous documents. The guide encourages agents to use digital signing options, if available, to simplify the process.

    By providing this comprehensive guide, NAR aims to educate consumers about the home-buying process and help them navigate the often-complex steps between signing and closing.