The last phase of the home buying process is crucial. You have already taken care of the inspection and the like, but now you have to wrap it all up. Then, your entire home shopping process will finally pay off on closing day. As they say, â€œItâ€™s time to bring it on home!â€
Hopefully, your settlement or escrow process has moved forward without hitting any major snags. But at this point you need to review these ten last-minute tips for a smooth closing to make sure that you have covered all the bases.
Ten Last-Minute Tips for a Smooth ClosingÂ
You reviewed your estimated closing twice already and are about to review the document a third and final time right before closing. Donâ€™t wait until the last few days or hours.
Check with the closing company to make sure the seller has stayed on schedule.
If you have negotiated for repairs to be made by the seller, chances are he will wait until the last minute to do them. He will want to make sure all of your contingencies have been met and removed and you are locked into the deal before he spends a single cent on your requested repairs. Make sure you and your Realtor keep tabs on the seller to get them done in time.
Hopefully you have been staying on top of your mortgage broker or bank. Have all of your newest bank statements, pay stubs, and records ready just in case there is an eleventh-hour request for yet another document. Make sure your loan is approved and ready to fund in time for the closing.
Confirm that the appraisal came in at the appropriate amount and that the official report has been sent to your mortgage company for approval of your loan. Without it, you wonâ€™t get your loan finalized.
Review every document sent to you and return it immediately. Time is of the essence, and you need to be ahead of schedule at all times.
If you have had an attorney work with you on this purchase deal, ask him to come to the closing. He will be able to do any last-minute troubleshooting on your behalf. If the escrow officer or closing agent knows your lawyer will be attending, all those little details will probably be taken care of before you arrive.
Have your funds ready and transferred to escrow. You handed over your deposit money way back at the start of escrow. But where is the remainder of your funds for your down payment coming from? Are you pulling money out of a money market account, mutual fund, or savings account? Plan ahead by getting the money ready to be transferred or wired into the closing account. Banks, for instance, can often take a day or two when you request a wire transfer of a large sum. If you plan ahead youâ€™ll also avoid paying penalties for withdrawing funds from other investment accounts. This could save you big bucks. The money must be in the escrow account prior to the closing day.
Never close on a Friday. Always schedule a closing on a Wednesday or Thursday. Last-minute items often get delayed. Closing on a Wednesday allows for an extra day or two, just in case.
Donâ€™t plan to take possession of the property on the day of closing. In fact, be flexible for at least two days after the preferred closing date. Things always go wrong, and closings are often delayed.