Most people live in their homes for around 13 years before moving to different ones. If you only move every 13 years, you probably won’t remember much about the home-buying process.
Buying a home takes time, consideration, and hard work, and you’ll have a lot to do before closing day.
If you’re preparing to purchase a home and want a successful closing day that doesn’t get postponed, you’ll need to make sure you complete all the necessary steps to achieve this goal.
Continue reading this guide to learn how to prepare and achieve a successful closing day when buying a home.
Contact Your Lender Right Away
Closing on a home is the final step of buying a house, and it takes some work to reach this day. The first thing you’ll need to do after reaching an agreement with the seller is to contact your lender.
Your lender plays a significant role in the closing process, and they’ll need the home information right away. They will ask for a copy of the purchase offer, as this contains all the vital details about the transaction.
They might ask for other things, too, and they will give you a list of things you’ll need to do to work towards your closing. This list will guide you and help you know exactly what you must do to close the deal.
Complete the Property Title Search
Closing on a house also requires getting a property title search. Every home has a title, and the title must transfer from the seller to you before you take possession of the home.
Getting a property title search is a requirement your lender will have before issuing you a loan, but it’s also something you’ll want to get.
When you hire a title company to handle this task, they take on the important role of researching the home’s title. This process has several purposes, including the following:
- It tells you the real owner of the house
- It reveals any liens on the home
- It tells you if the property has easements
The company that performs this search can provide you with an insurance policy for it, and you’ll need to purchase this policy. A property title insurance policy protects you from issues the title company failed to find.
Get the Appraisal Completed
Next, you’ll need to work on getting the appraisal completed. Your lender will ask for this, and you’ll also want to know the appraised value.
The appraisal tells you the value of a home right now. If you offered more than the appraised value, you could ask the seller to lower the price. Your lender will require that you pay less or equal to the appraised value.
Lenders generally tell you what appraisers you can use, and some lenders even order the appraisals themselves. You can’t proceed with your closing without completing this step.
Hire the Inspectors
When you’re buying a home, you have the right to request inspections. If you want inspections, you’ll need to make this request on your purchase offer. If you requested any, you’ll need to complete those soon.
Most homebuyers hire home inspectors to provide an overall opinion and view of a home’s condition. You can hire other inspectors, too.
For example, if the home has a septic system on the property, you can get a septic inspection. You can also get a pest inspection, roof inspection, and well inspection.
If the home has a swimming pool or fireplace, you might also want to hire inspectors to examine those things. You shouldn’t schedule your closing until you receive the reports from all the assessments.
Complete the Final Walkthrough
As you get closer to your closing day, you can talk to your real estate agent about scheduling a final walkthrough. A final walkthrough offers a time to view the home one last time before closing on the deal.
The best time to do this is two to three days before your closing appointment.
By this time, the seller will probably be moved out of the house. The seller should also have everything completed that they agreed to do.
During the walkthrough, your main objective is to make sure the house is in the condition you assumed it would be in when the seller transferred it to you.
You can check to see if the seller left all the necessary things. You can also examine the issues the seller agreed to fix before vacating the home.
Review the Settlement Statement
Around this time, you should receive a settlement statement from your lender that shows you a breakdown of the costs. It should have two columns on it, one showing your financial details, and the other showing the seller’s.
The goal of reviewing this statement is to ensure that the numbers are correct. Does the statement accurately reflect all the expenses you agreed to pay? Does it show all the credits you should receive?
If you spot any errors, you must notify your lender immediately, as they cannot make changes at your closing appointment.
Obtain Your Cashier’s Check
When closing day on a house finally arrives, you’ll need to prepare to attend this meeting. Before you go, you’ll need to obtain a cashier’s check, and your settlement statement will state how much you need to bring to closing day.
You’ll also need to make sure you have your driver’s license at this appointment. If you have questions about any part of the home purchase, talk to your real estate agent or lender before attending the closing.
Prepare for Closing Day By Starting Now
It takes at least four weeks from the date the seller accepted your offer until closing day. During this time, you’ll have a lot to do, but you can follow the steps listed here for a smooth, problem-free closing.
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