Do These 6 Things Before You Close On Your New Home
Whether you are a first time homebuyer or it has been a while since your last home purchase everyone wants to do things right to have a smooth transaction. As you approach the few days leading up to your big closing day, make sure you take care of these important items below.
Check Your Contingencies
Most purchase and sale documents will have contingencies or things that the buyer must do before the transaction is completed. The most common ones include a home inspection, appraisal and financing contingency. These need to be completed by the buyer and often have dates that they need to be done by so it is important to adhere to them so the deal stays alive.
Check The Title
Buying a home is a large commitment so you will want to make sure the title is clear for when you take ownership. Lenders will assist you with doing a title search but ultimately you will need to purchase title insurance to protect you from any legal claims against the home. You don’t need any distant relative of the seller trying to claim ownership and getting in the way.
Check Approval of Mortgage
There are two main things that you need to follow when you go through the home purchase process with regards to financing. First, make sure that you provide the lender with any and all documents that they request from you while they secure a loan. These typically include bank statements, pay stubs and the like to prove your financial stability. Second, it is important to refrain from any large purchases that may affect your credit. Put off that new car purchase until after you close on the home.
Check Closing Disclosure (CD)
This is your master document that spells out all of what you need to pay to close on the new home. This will spell out the loan terms, closing costs, prepaid items and any other items required for the transaction. You should receive a final copy a few days before your closing so it is wise to cross check this with the initial estimate your lender provided to you earlier on. Should there be any big discrepancies this is the time to ask about them.
Complete Walk-through
Your final walk-through of the home should take place 24 hours before your closing date. This should also be done after the seller has completely vacated the property so that no moving related damages can happen. Make note that everything is in the working order that it should be and there are no surprises.
Prepare For Closing
As you head off to your actual closing meeting, make sure you have the following items with you: Copy of homeowners insurance, copy of purchase and sale document, home inspection report, loan documents and a government issued ID where your name matches to all documents. Get ready to sign a lot of documents and then collect the keys to your new home!