“Before anything else, preparation is the key to success.” – Alexander Graham Bell
Congratulations on buying a home! No doubt it’s taken a lot of time and effort to get to the closing day where you’ll finally get your keys and become a proud homeowner. You’ve probably played out the scenario in your head of how things will go, but there are also proactive things you’ll need to do to complete the sale. Let’s take a look at what to expect and what to know before you close on a house.
What is closing?
Closing is one of the final components of the home-buying process in which the sale of the property takes place. A buyer signs lender agreements for his or her mortgage while the funds transfer to the seller to complete the transaction. This important legal day can involve transferring funds from escrow, paying title and mortgage fees, and establishing the deed in your name.
When does closing on a house take place?
Once an offer on a house is accepted, closing on the property can take place anywhere from less than 30 days to 90 days afterward. This gives ample time for a real estate appraisal, a home inspection, and a title search to be conducted, as well as allowing time for mortgage financing to be secured.
Checklist: Before You Close on Your Home
You’ve come this far in the home-buying process, so it never hurts to go over everything one last time just to be sure.
- Contact the closing agent to confirm:
- where they’re located
- any specific instructions they may have for you
- necessary items they want you to bring
- Go over the details:
- legally, you should have your closing documents in your possession three business days before closing takes place. This is the time to double and triple-check:
- names, numbers, spelling, and all of the basics that could turn into huge problems later on if not corrected now
- that the closing costs are in agreement by reviewing your itemized closing statement
- that the seller has completed their responsibilities as per your final walk-through checklist
- confirm with your utility companies that everything has been turned on and is ready to go, including Internet, electricity, gas, telephone/cable, and water/sewer
- if you’ll be continuing maintenance service with contractors for pool, lawn care, or similar, contact them to establish a new account in your name to ensure continuous service
- where and when you’ll be getting the keys/remotes for the gated entry/garage door
- If you notice any errors or have questions, contact your closing agent immediately.
- if you are moving into an HOA, be sure to check their policy about move-in days as some HOA’s don’t allow weekend move-ins
- if you are moving into a condo, be sure to receive approval for your move-in day from management
- legally, you should have your closing documents in your possession three business days before closing takes place. This is the time to double and triple-check:
3. Have your checkbook ready to pay for closing costs and ensure the money is already in your account should you need to transfer funds
Checklist: Closing Day
These are the vital things you’ll need to bring to your home’s closing:
- A cashier’s or certified check to pay for closing costs (alternatively a wire transfer from escrow)
- Closing paperwork
- Government-issued photo ID
- Proof of a homeowner’s insurance policy (only required if you’re financing your new home)
Who’s present at closing day?
In some cases, there’s an array of people present on closing day, including buyers, sellers, realtors representing both parties and a closing agent or real estate attorney. But, depending upon the state in which your home is located, your closing will take place with either a closing or an escrow agent in their office.
- If your property is located in the western or southwestern United States, you will likely have what is referred to as a “dry” closing and it will take place with an escrow agent
- At a dry closing, you’ll sign all of the required documents to transfer ownership and secure your loan, but you’ll then leave the escrow agent’s office and will not receive the keys to your new home for a few days. This allows the funds you’re borrowing from a lender to be disbursed; once the mortgage is recorded in the public records, keys are then exchanged
- If your property is elsewhere in the country, you’ll have a “wet” closing that will take place with a closing agent, who in many states is also a title agent and/or an attorney
- At a wet closing, all of the necessary activity regarding the closing of your loan and the transfer to you of your new property will occur at one time and on one day. After signing all of the required documents, you will leave the closing with the keys to your new home
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For more information related to closing on a house read:
Details of a 4-Point Inspection
The Essential Moving Guide Checklist
Author – Connie Motz
