There are a ton of steps between choosing a home, making an offer and collecting the keys. Here are several tasks to do to make a smooth fast closing on a home.
1. Get All Contingencies Squared Away
This is a big part of the negotiations between the buyers and sellers. A contingency is a clause that can be added to a contract that allows a buyer to walk away from a contract without any penalties. Some of the most used contingencies are a mortgage contingency, an appraisal contingency, home sale contingency or a home inspection contingency. Before closing, you will want to make sure that any contingency in the sales contract has been resolved.
2. Review Your Closing Disclosure Form
Anyone who will be using a home loan, will get a closing statement before the closing happens. The closing disclosure will be given to you around three business days before the closing. It is a five-page form that lists out all the terms of your loan and tells you all the fees owed at closing. Take time to review everything on the closing disclosure and if you have any questions, make sure to contact your lender.
3. Do a Final Walkthrough
About a day before closing, do a walkthrough of the home with your real estate agent. Many professionals tell you that it is ideal to walk the property the morning of your closing to make sure the property is in the same or better condition as when you saw it last.
4. Bring the Proper Documents
Nothing is more frustrating than to not have all the documents at your closing. Before your closing gather your government-issued ID, a cashier’s check, and proof of home owner’s insurance.
5. Rope In Your Support Team
You want to have your support group who has been with you through the whole process at the closing. Having them attend the closing will help expedite the process if there are any hiccups. A lot of times the your real estate agent, loan officer, attorney, a title insurance rep and your closing agent will be required to be at the closing.
6. Schedule Transfer of the Utilities
Nothing is worse than getting the keys to your new home, and not having the utilities working when you open the door for the first time. Before your closing date, transfer your electric, gas, cable and internet and set them to be turned on in your name day of closing.
7. Sing On the Dotted Lines
There is a lot to sign at closing, so it will take time and be a little intimidating. Take your time and read through each document before signing. If you have any questions, ask them! Once the paperwork is signed there is no going back.
Remember if you are in the market for a home, start with hiring a real estate agent. They can get the ball rolling and can advise you on a lender who can help you with the mortgage process. Following these steps is a great way to help the transaction run quickly and smoothly.