Real Estate Closing Checklist for Home Buyers

Purchasing a home is one of the biggest financial decisions that you will make in your life. There are many details to see to after you sign the contract and before you reach the closing table. Decisions made by buyers can be costly if you make mistakes and frustrating if you don’t understand what’s going on prior to and during the closing. It’s easy to find a new home through Movoto and by understanding a few details of your closing, you will be better prepared to go through the process of purchasing a home.

A real estate closing checklist will help you keep things in order as you move toward closing on your new home. Once you have a contract your lender and closing agent which can be a closing attorney, Title Company or escrow agent will need a copy of the contract to get everything in motion that is required prior to closing.

They will need a copy of the contract so that they know the terms that you have agreed to. They can then work toward obtaining a loan so that you can purchase your home. The lender will provide a commitment letter and you need to understand the conditions of the loan, its interest rate and terms.

If the lender requires any corrections in the property due to the violation of building permits or zoning laws, you may need to have the seller correct these issues before your sale can proceed. Once you and the bank are satisfied with the commitment letter, you can firm up the closing date.

A common mistake for first-time buyers, is adding new debt while in the middle of a home purchase. If you have a loan in the works for the purchase of a new home, do not even apply for a car loan, credit card or any other type of consumer debt. The results of doing so can lower your credit rating and adversely affect the purchase of your new home.

Depending on your location a real estate attorney, Title Company or escrow agent performs the administration of a closing. You can shop around and find the one that suits your needs and can fit you in their calendar. They are tasked with researching the title of the home and insuring that it is clear. If they don’t offer title insurance, you need to be sure to purchase it in the event that a cloud on the title ever arises.

If your bank requires a survey, you will need to hire a surveyor and get this information to them and the closing agent prior to the closing date.

Many lenders, whether for a conventional, FHA or VA loan, will require a termite inspection letter assuring that the home is free of infestation. Most reputable pest control companies offer this service and you can shop around for prices.

Not a requirement for a mortgage, hiring the services of a professional home inspector is just a good idea. If you plan to use their services, when purchasing a home, make it part of the contract. Then let your inspector of choice know when you have a contract so that they can perform the inspection as soon as possible. This will give the seller time to make repairs, if repairs are necessary, before closing.

You will require homeowners insurance on your new home and it you will need proof of the policy at closing.

Arrange for utility connections including power, gas, water, sewer, trash pick-up and cable, where it applies. The seller should be able to give you a list of the service providers for their home.

There is a lot of paper flying around at a closing table and if you know what you are signing beforehand, the closing will go more smoothly, for everyone. Items that you should peruse carefully three days before closing are the closing disclosure, promissory note, deed of interest, security instrument and the deed, which is the document that transfers ownership of the property from the seller to you. Make sure that all of the numbers are aligned and that you are in agreement.

Three days prior to closing contact, all of the parties that will need to be at the closing to make sure everyone one is one the same page and confirm the time and location of the closing at this time. If you wish your attorney, Realtor® or closing agent can join you at the closing table.

Be sure that you have the funds that you will need for closing day. Take a cashier’s check for the exact amount that you will be required to pay at closing.

Take a picture ID, a checkbook, so that you can pay any amount that you owe, proof of homeowners insurance and your termite letter.

Be sure to get keys for the home, garage door openers and security codes before you and the seller part ways from the closing.

Whether you are seeking a conventional loan, VA loan or FHA loan, most of what is listed will apply to you. Getting everything organized as the sale progresses will assure that you have done everything on your side of the sale to get the sale closed. Having all of your items in order will also make things smoother at the closing table.

2 Point Highlight

A real estate closing checklist will help you keep things in order as you move toward closing on your new home.

Purchasing a home is one of the biggest financial decisions that you will make in your life.