6 Steps Leading to Your Home Closing
You have set in motion the process that will finally get you your house once your bid is accepted. You are probably eager to move in, but it is in your best interest to make sure the home you get is in good condition and at a good price. Here are six steps to lead to your home closing.
1. Apply for a Mortgage
In general, you have two options for getting a mortgage:
- Go to bank lenders or mortgage companies to get current rates
- Get a mortgage broker
You should consult with a couple lenders to find the best deal.
2. Get a Home Inspection Before Your Home Closing
You need to schedule a home inspection as soon as possible and prior to your home closing. This will let you know if there are any issues that could prevent you from buying the home. A standard home inspector’s report will cover the entire home, including the:
- Heating,
- Air-conditioning
- Plumbing
- Foundation
- Roof
What the inspectors find will give you the chance to reconsider or renegotiate before the home closing in case any structural damage or needed repairs. Talk to some local friends, family and your real estate agent to get some recommendations. Then, make sure to ask those inspectors for references and look up the inspector with the Better Business Bureau.
You should plan to be there for the inspection because you will learn a lot about the house. These inspections usually take from two to three hours. The cost can be anywhere from $200-$400 or more depending on the size of the home.
3. Get an Appraisal
Your lender will want to assess the property value before finalizing a mortgage and prior to the home closing to make sure the home has enough value for the amount you borrow. An appraisal considers the following to determine the home’s value:
- The home’s layout
- Square footage
- Prices of similar homes for sale in the area
Remember, you, as the buyer, typically pay the appraisal fee. These can vary greatly depending on the scope and size of the home.
4. Shop for Homeowner’s and Title Insurance
Prior to your home closing, you need to secure a good homeowner’s policy and title insurance to protect your investment. In most cases, your lender will require both in order to take out the loan. Keep in mind that you might be able to lower your rate by purchasing your homeowner’s and auto insurance from the same company.
5. Do a Final Walk-Through
Doing a last-minute walk-through right before your home closing is important. You have to make sure everything is in the condition the sales contract outlined, like:
- Ceiling fixtures that the sellers agreed to leave behind are still there
- Old built-ins they agreed to take with them are gone
Go during the day and be super thorough to check that no new issues have come up:
- Flip light switches
- Turn on the water taps
- Run the appliances
- Flush toilets
You can ask for credit at the home closing if you see that the attic hasn’t been cleared out or a window is broken. This will pay for any needed removals or repairs.
6. The Home Closing
On home closing day, everyone involved, the seller, the buyer, and their representatives, will sign the contract papers. The buyers will have a check to cover the closing costs, including:
- Title search fees
- Attorneys’ fees
- Transfer taxes
- Homeowner’s insurance
The deed of ownership will be transferred to you once all the documents are signed, and all funds are properly distributed.
When you work with Affiliated Home Solutions, we help make your home closing stress-free. Contact us today and let us help you find and close on your dream home.