Real estate closing is the final step in the home purchase process. On the closing date, all parties confirm that everything is above board so that the new owner can take possession of the house. You need to prepare for closing since things can still go wrong. Below are some helpful tips to help you avoid hiccups on the closing date.
Confirm the Paperwork
Buying a home involves a ton of paperwork. You will confirm the paperwork on the closing date. However, it doesn’t hurt to confirm everything on your own before the big day. Who knows, you might discover an anomaly that can disrupt the closing. Below are some of the paperwork closing requires:
- Closing disclosure
- Your identification document
- Proof of home insurance
- Proof of payment of closing costs
In case you discover an anomaly, fix it before the closing date. Remember to carry the documents with you to the closing venue.
Save the Date
You need to be present at the closing venue. Clear your calendar for the day and make the necessary travel arrangements, especially if buying the property on a mortgage. The closing process can take as little as a couple of hours, but that is not a given. Problems might arise that extend the process. Thus, you shouldn’t schedule other important tasks for the same day.
Clear the Payments
You should also clear any pending payments before the closing date. For example, you should confirm and clear your share of the closing costs. Don’t plan to carry cash with you to the closing venue. Instead, make the payments beforehand and carry with you the proof of payment.
Satisfy the Seller’s Contingencies
Confirm that you have satisfied the necessary conditions. Otherwise, the seller will not transfer the property’s ownership to you. For example, the seller may accept your home purchase offer contingent on:
- The HOA (homeowners association) board accepting the sale
- Them buying a replacement home before the closing date
- You depositing the necessary down payment into the escrow account
The exact contingencies will depend on the seller, jurisdiction, and other circumstances of the transaction.
Confirm Your Contingences
Both sellers and buyers use respective contingencies to protect their interests during real estate transactions. For example, you may make your home purchase offer contingent on:
- You getting the financing you require
- You selling your current home
- The seller completing the agreed-upon repairs
Again, the contingencies vary by circumstances. The main thing is to ensure the seller has satisfied the transaction by the closing date. The seller won’t have any motivation to satisfy your contingencies post-closing.
Conduct a Walkthrough
Lastly, you will need to conduct a final walkthrough just before closing — preferably a day to closing. The final walkthrough involves going through the house to confirm that everything is as it should be. For example, you should confirm that:
- The major appliances work as expected
- The seller has cleared their belongings out of the house
- The structural condition of the house hasn’t changed since you made your purchase offer
- All the items included in the sale are available
The final walkthrough is important since a lot can change between the date you make your offer and the closing date. You shouldn’t have to pay for problems that aren’t of your own making.
An experienced real estate agent can help you confirm that everything is ready before the closing date. With over 50 years of experience in the real estate industry, Charles L Moles Real Estate can help you buy your dream house. We can help you with everything from home rentals, purchase, and management. Contact us for help, and we will be glad to help you in your home purchase journey.