The Home Closing Process
The home closing is a detailed process. That is why it is important to understand what is going to happen so that you can be properly prepared. Let’s take a look at the process and what you should know.
Stay in the Loop
There are many people on the home closing team including your agent, loan officer, and lawyer. Stay in touch with everyone to be sure that everyone has all the needed documentation and that everything is signed. You don’t want to get to closing only to find that there is a piece of paperwork missing. Something as simple as a missing signature can hold up a closing!
The Final Walk-Through
The day before the home closing, you should make a final inspection of the home you are buying. The reason for this walk-through is to be sure that:
- The house is in the same condition it was in during the due diligence process
- Any repairs that were agreed upon have been completed
- The home is clean and ready for a new owner to move in – this includes flooring, bathrooms, kitchens, and appliances.
- Anything that was to be left in the home, such as appliances or furniture, has been left in the home
- There are no items of personal property left behind from the previous owner.
If there is anything amiss, be sure to let your real estate agent know. Otherwise, you can sign the form stating that everything is fine. If there are problems, there may still be time to get the addressed before the closing. Big problems, like a broken AC unit, may take more time and require a new home closing date.
Look Over the Loan Documents
Even though it is up to the loan officer to create the documents, you should also look them over before the home closing. Ask for the HUD-1, also known as the closing settlement statement, 24 hours before closing. Be sure that it matches the good faith estimate that you got during the application process. If they are not the same, discuss these with your lender.
Sometimes, the mistakes are simple like a misspelled name or an incorrect address. Other mistakes could cost you money like different terms than you were quoted.
Remember, getting your loan straightened out needs to happen before you sign the papers. Once you sign, no changes can be made. As with the walk-through, there is still time to make changes, but some changes may require a new closing date.
What To Bring to the Home Closing
What you need to bring to the home closing varies from state to state. However, you will definitely need to bring:
- Photo ID
- Certified funds for closing – this cannot be a personal check or cash
The seller, if attending the closing, will bring:
- Loan payoff
- Final utility meter readings
If the seller does not attend, their lawyer will have this information.
Plan In Advance
In general, there are many things to do before a closing that will make your home closing day go more smoothly. Here is a quick list of things that you should schedule in advance:
- Moving – professionals or friends should help you remove your belongings about a week before closing
- Cleaning – professionals or friends should help you clean the house for the final walk-through
- Utilities – have your utilities cut off on the day of closing. You can shut off non-essential connections like cable or the Internet at any time.
Knowing the process will make the day go more smoothly for you. It will help you avoid potential problems that could set back your home closing date. We have helped hundreds of home buyers through the home closing process and would love to help you as well. Give us a call.