Prior to closing on a home, you should make your preparations beforehand and get all the paper work in order. Home closing is an exciting part of home acquisition. For a smooth closing process, following are several items to be considered.
Select the closing or the settlement company who will take care of the closing. Usually, the real estate agent chooses the settlement agent or company when the initial offer is made.
As soon as the mortgage is approved and you receive the commitment letter, you can now set the date of closing. The agent normally gets in touch with you, the seller, lender and the closing agent. This should occur before the commitment letter from the lender and the lock-in interest rates if applicable.
Establish your insurance before the date of closing. Take along with you the name and contact details of the agent as well as the copy of the policy. Bring any form of identification such as your driver’s license.
Mortgage lenders will require a title search on a home to make sure that the borrower or the homebuyer receives a clean title. The search is important to ensure that no liens are attached to the property and the seller is indeed the owner.
Prepare the certified funds to bring during the closing ahead of time. Before closing, the closing officer or the realtor will contact you regarding the amount of funds.
Check out the documents before the day of closing. You can request the lender to furnish a copy of the documents to the title company before closing.
The lender usually requires a homeowner’s insurance which serves as your protection and their protection in the event of loss or damage to the property. Many buyers purchase an insurance that covers fire, theft and weather-related perils.
Schedule a tour of the house with the seller before closing. Take notes on details such as the main cut-off valves for water and gas, emergency switch for the furnace and burner, thermostat for the water heater, fuse box or circuit breaker box. Check out if the seller knows the history of the home and any renovation plans or wiring diagrams that was left undone and other important information.
Get the final estimate of the closing costs. Inspect the form settlement one business day before the settlement date. This is important because you will be required to pay the balance of the down payment and the closing costs with either a certified check or a cashier’s check.
Ask for the names and contact details of the contractor or other professionals who have worked on the property such as the electricians, plumbers, roofer and carpenters. Find out what repairs or improvements they have done with the home so far and when these happened.
These are the items that you need to settle and prepare before you close on a home and will help speed up the closing process and make your dream of owning a home a reality.
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