What to expect at closing
You've survived house hunting and the bidding and negotiating on your new home, and now it's time to make it yours. But to do so, you have to sit down with various people, which may include the seller, your real estate agent, title and mortgage company officials and possibly your attorney at what's known in real estate lingo as the "closing table."
At closing, you will close on the purchase of your new home, and if you are taking out a mortgage, on your home loan, as well. The whole process may take about an hour. Here's what's expected of you:
-
Complete the walkthrough
Before the actual closing, you'll most likely have the opportunity to perform a walkthrough of the property and confirm that the condition of the home is as it should be, as specified in the sales contract.
-
Bring enough cash
At closing, you'll be paying for your share of the closing costs, and will be bringing the down payment, so be sure to bring a certified check or a cashier's check. Your lender will provide a lender's check for the remaining balance that's due on the home.
Your HUD Uniform Settlement Statement (which both you and the seller will sign) will detail the closing costs (plus all the monies involved in the transaction), as well as who is expected to pay them.
-
Show id
You will also be required to show proof of your identification, such as your driver's license or passport.
-
Proof of insurance
Bring a copy of and proof of payment for your homeowner's insurance, plus your flood insurance policy, if you have one. Your lender may want to review these before allowing you to close on the home.
-
Sign on the dotted line
To transfer ownership of the home, both the buyer and seller will be required to sign several documents.
You may be required to review and sign the purchase agreement, a promissory note for your loan, mortgage documents, title documents, the settlement statement and the truth in lending statement (which will outline the costs of your loan, your payment schedule and amount financed), while the seller will also sign the settlement sheet -- and, importantly -- the deed to the home to transfer ownership of the property to you. Copies of these documents will be filed at the county recorder's office, but be sure to keep your own copies as well.
-
Take the keys!
Once all the necessary paperwork is completed and everything is in order, you will be given keys to the home. While you will no doubt immediately change the locks upon moving in, the keys are the final sign that the home is indeed yours.
Leave a comment
Buyer's remorse -- we've all experienced it as some point in our lives. That's when you think you've found exactly what you want -- whether it's a home, a car or a new piece of furniture -- but once it's yours, you second guess yourself. Did I really make ...
By Trulia | 19 Comments
Comments
direction.
In the Commonwealth of Pennsylvania, the settlement company selected to handle the title searc, title insurance, and making sure that the HUD 1 settlement sheet is accurate and complete, is the entity which handles the disbursement of checks to lending institutions, brokers, and vendors such as inspectors.
With the advent of the new HUD 1 in January 2010, settlements will probably take about 45 minutes longer or approximately two hours.
The closing date is the date all documents get recorded at the County courthouse, and generally, is the soonest date the new owner gets to take possession of the property. Often, that possession is a few days after the closing date, so that the former owner has the funds from the closing available to them. Often their funds are what they will use to close on their next home, meaning there may be a few days time lag from signing papers, handing over funds, closing, and taking possession.
Lenders can take a longer time to review signed documents from a "closing" table, so that also creates a time lag from signing paperwork to actual closing/recording.
VJ Adriano
E-mail to: VJ@Mris.com
Cell: 301-357-5071
http://www.RapidSellers.com/VAdriano
DELTA EXCLUSIVE REALTY LLC
Sales & Leasing Associate MD, DC, VA
99 Commerce place
Largo, MD 20774
1) How and which utilities to change over (nothing like moving into a new home without utilities);
2) If your state offers home owners exemptions (like we do here in Ada County (Boise) Idaho; fill out the form so you pay less in property taxes;
3) make sure you get a copy of the plat map and CCR's of your property (should have received them well before closing though);
4) Ask for a copy of your appraisal;
5) Complete change of address forms with the USPS;
6) make sure you understand the financial stability of your Home Owner's Association (also should have been done prior to closing) so that you are not suprised shortly after closing with a "special assessment" to cure their insolvent finacing;
7) If you are a first time homebuyer or an investor, change your tax withholdings if you will be receiving a tax refund due to the new deductions you may not have had before;
8) Talk to your CPA and your financial planners to see what they suggest for your personal situations;
9) If they suggest "estate planning" talk to your attorney to help set that up;
10) If your Realtor, lender, title company, home inspector, etc., did a fantastic job refer them to your friends and co-workers!
Also, don't forget to get a copy of all of your closing documents including the title policy, HUD-1 final closing statement (used to put in for tax credit if you are eligible for the credit).
If you are making any payments shortly after closing such as common charges when purchasing a condo, make sure to note the address of where to send payments.
That's what so great about throwing out good info.
People can add to it and cover all the bases.
Great thread!
Champagne at closing!
Although, our escrow company always has to remind me, "Marla, no alcohol at the signing table!!"
Gotta LOVE the celebration with clients!!
And then go ahead...pop that champagne!
Showing up to closing without picture id
Buyers are married but information given to closer shows unmarried
Language issues such as Spanish speaking buyer but non-Spanish speaking closing officer.
Missing contract addendums that will change terms of sale
1. Be prepared that the negotiation is not always finished when you arrive at the closing table. There may still be a few lose details to work out, but keep your eye on the prize not the "Principle of It."
2. Agree that Walk-thru the day of closing is best scenario. The closer to closing the better to be sure everything is as outlined and promised in the contract and attorneys letters
As for the Seller the same appli0es, make sure that all the professionals involved with the sale of your property are doing what is required to complete the sales as outlined by the contract!
Remember the Closing should be well defined and outlined at least 48 hours before the actual closing, there should be nothing left to do but sign on the dotted lines, transfer of monies, and property, and the passing of the key from previous owner to the present one!
If your closing date is short, this may not be possible but it never hurts to ask!
Arvada Plumbing
Arvada Plumbing
Arvada Plumbing
Westminster Plumbing
Then make sure to have the locks replaced after closing!
Your realtor should go over the HUD Statement in advance so there are no questions or disputes at closing. It is good to have a representative from the buyer’s loan officer at the closing so they can go over any questions about the loan. Make sure you use professional people help you buy or sell a home and your closing should go smoothly
Certainly unforseen issues can arise prior to closing however, you could ask your Broker/Agent to provide you with a "check list". Check lists, are very valuable tools and certainly help keep you organized and focused on items which need to be addressed, prior to closing. :)
http://www.myinsurancenerd.com