How to Prepare for your Closing
You found the right house, your offer was accepted, the contract was signed and, in a few weeks, you will be the proud owner of your very own home. Well, not so fast. There is ‘the closing.’ The closing is when the paperwork gets signed; the loan documents if there is a mortgage, the deed, you pay your closing costs, and the keys are handed over.
In preparation for the big day, here are a few do’s and don’ts. The first big ‘do’ is to stay in touch with your realtor. She or he will be in touch with the title company or attorney handling the closing and will keep you informed if there are any problems, and that any contingencies in the contract have been met.
Financials. Once you have signed a contract, keep your financials as stable as possible, both before and after closing. For instance, do not buy any big-ticket items, co-sign for a loan, close or open new credit cards. The mortgage company will usually do another credit check before drawing up the closing documents and changes in your credit may affect the terms of your mortgage.
The same is true after you close on the home, wait a few months before taking on any additional financial commitments, such as a car loan. If you change your job before closing, let your realtor and mortgage company know. The bank will likely require additional paperwork.
Walk through. If there were repairs that had to be done, as agreed in your contract, they should have been completed and inspected at least a few days before the closing. You will then do a ‘walk through’ of the property with your realtor, usually the day before closing. Most sellers will arrange to have the utilities turned off a day or two after the closing so you will be able to check that appliances, plumbing and electricals are in working order.
The HUD-1 settlement statement. You should receive the settlement statement the day before the closing so you have time to read it over carefully. The statement lists all the charges and credits due to both the buyer and seller. The statement should be very close to the good faith estimate your mortgage company gave you when you signed the contract. There will be some minor changes in the figures, but if you have any questions, go over the statement with your realtor.
If anyone in the transaction has changed names, newly-weds for instance, they should have already sent the attorney or title company information on this change, such as a copy of the marriage license. You might be asked to bring the original document to closing.
Closing day! The settlement statement will have instructions for wiring closing costs, usually from the funds being held in escrow for you. If you have to take funds to closing, these must be in a cashier’s check from your bank. Do not take cash with you to closing. Take two forms of ID and at least one must have a photograph, such as a driver’s license. If there is more than one person involved in the transaction, such as a spouse, that person must also take along two forms of ID. You should also take proof of homeowner’s insurance.
Post-closing – Change the locks. Set up the utilities in your name. Change the address on your driver’s license and insurance and……Enjoy your new home!
To buy or sell your Florida home call me at: 954-295-9282.
