After you go through the process of choosing the right home, making an offer and getting the offer accepted, you will find yourself at a closing. This can be stressful, if you don’t understand what to expect.
The closing is a bit different for the buyer and seller. There some things you should expect and a few ways you can make the closing on your home painless (or less painful at least). Here’s what you should know about closing on a home.
The Loan Documents
For the buyer, a major part of the closing will be going over the loan documents. You don’t want to just go through and sign a bunch of papers you don’t understand. Instead, you can ask your lender if you can review the documents before the closing. This may help speed up the actual closing.
Along with speeding up the process, if you go over the loan documents ahead of time, you will know if something has been changed at closing. Make sure you go through the closing settlement statement (HUD-1), the good faith estimate and all of the other major documents very carefully.
Walk Through the Property 24 Hours Prior to Closing
Your purchase agreement should allow you to do a walk-through of the property 24 hours prior to the closing. As the buyer, you want to make sure the seller has vacated the property, unless you have a different type of agreement. As the seller, you want to do a final walk through before this happens to ensure everything is in order. The last thing either party wants is something holding up the closing.
Both the buyer and the seller may need to bring specific documents to the closing. Make sure you check with your real estate agent and title company to get the right documents together before you arrive at the closing. Most commonly, you will need a copy of your drivers license, and a cashiers check (some title companies want their funds wired) for any monies being paid to the title company.
Expect a Mistake
We are all humans and mistakes do happen. Some closings go without any issue, but many times, there will be a small mistake. Sometimes, this can be fixed right at the closing, but if the mistake it too big, it could mean rescheduling the closing.
The best way to avoid any mistakes is to stay in constant contact with your real estate agent and your lender. They can help give you the proper information to ensure you bring everything you need and you are prepared for the closing.
Make Sure you Ask Questions
Going into a closing blind is the worst thing you can do. You want to ask as many questions as you can before the process. The more you understand about what you need to bring, the loan documents and the rest of the closing process, the smoother it will go.
Closing on a new home should be a very exiting process. Make sure you use these tips and you understand what to expect. If you go into the closing prepared, everything should go very smooth and you should be ready to move into your new home shortly after.
Originally posted 2015-08-27 13:17:00.