Once a purchase offer has been accepted, both parties are now excited to get the closing day. This day finalizes the home buying process; the seller getting his or her money while the buyer moves into his or her new home.
Unfortunately, home buying is not as easy as paying money and moving in. When people buy homes, they just don't give money and pay the house in full. Mortgage is usually involved. Moreover, ownership of the property by the buyer is not conveyed by word of mouth. Hence, there are certain things that need to be done in order to legalize their ownership of the new owner and do a systematic pay-off through mortgage. This then makes closing day a tedious one.
What transpires on this day? All parties involved in the home buying transaction will meet up in a certain place (usually at the office of the closing agent). The buyer and the seller would have to pay off all settlement fees that they owe. The closing agent receives all the money and all documents that need to be signed by both parties.
If things go well prior to closing, there will be no delays. After the closing, the new owner will receive the key to their new home. After that, they can move-in on the date that was agreed upon by both parties.
But there are certain things that both parties need to do before the closing day. This is very important to avoid delays in transaction. Here are some things t put in mind:
1.
Get pre-approved. If the buyer has been pre-approved before making a purchase offer, the waiting time for closing day should not take that long. This also goes the same for a borrower who submitted a complete file for application of mortgage. However, special types of loan may generally take up to 45 days to close.
Have the house inspected. Aside from obtaining a home inspection service, you may want to make a final walkthrough 24 or 48 hours before the closing day. Make sure everything is working well.
Obtain insurance. Most lenders require a proof of insurance for the closing. Hence, you should have already paid for a minimum of one year policy of homeowners insurance.
Call the utilities company. You should be able to do these weeks before the closing. Remember, after the settlement period, you would have to move-in. Ensuring the services are all up and running beforehand is important if you want things to be convenient on your first day.
Secure your funds. The closing fees can be overwhelming. If you do not want to be short on funds, make sure you already have them available. If you still lack money, you must determine your options already. Know who to borrow money (i.e. friends and family). Determine if there is a need for additional mortgage to cover for your down payment and other fees.
Preparation is the key to have a smooth closing process. Preparing what is needed before hand, will help you move-in to your new home the soonest.
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