A Buyer’s Guide to Closing Day on Your First Home
CONGRATULATIONS! You are approaching the final steps in your home purchase process! I couldn’t be more excited for this part of the transaction! You are only a few steps closer to holding the keys to your new home and have a glorious Key Day With Rene (#KeyDayWithRene)!
Likely you have heard stories around closing day from those close to you, which is why I have prepared this checklist for you–to ensure you don’t have to rely on your memory or someone else’s experience. Every purchase contract is different, but typically follows a very general and specific process. Here I will outline the closing day expectations and provide you with a simple checklist so that when the keys drop into your hands for the first time, the only thing left to do is to open the door and CELEBRATE!
SATISFY ALL CONTINGENCIES
Depending on what has been listed in the purchase contract, these will all need to be satisfied before moving forward. The typical ones are Home Inspection, Financing, and Appraisal. Once, you the buyer, are satisfied with these terms the contract becomes legal and binding. Your next step is to clear the Title.
CLEAR TITLE
According to Investopedia: “A clear title is a title without any kind of lien or levy from creditors or other parties and poses no question as to the property’s legal ownership.” Title search will be typically pulled on the property by the title company, although can also be pulled by the buyer.
COLLECT & REVIEW DOCUMENTS
CLOSING DISCLOSURE: The first document you need to review is your closing disclosure. A Closing Disclosure is a multi page form that provides final details about the mortgage loan you have selected and/or have been approved for. It includes the loan terms, your projected monthly payments, and how much you will pay in fees and other costs to get your mortgage (closing costs). Your lender should be able to review this to you for your review ahead of time. A thorough mortgage specialist will go over the details with you ahead of time. Make sure you understand this document so there is nothing left to surprise.
If you need a referral for an excellent mortgage specialist to get you approved to buy your house, reach out to me. I would be happy to connect you to one of the wonderful mortgage specialists I work with.
HOME INSURANCE: Traditionally, the lender is the largest stakeholder in the purchase agreement. (You) the buyer will typically put down a down payment, but a good portion of the home is secured through your lender. Because of this, a valid home insurance policy protects both you and the lender. The lender will definitely want to see these documents before closing. And if you’re buying cash, definitely get your property insured!
CERTIFIED/CASHIER’S CHECK (AND ANYTHING ELSE THE BANK REQUIRES FOR YOU TO SUBMIT BEFORE CLOSING): You will need to bring a check that reflects your closing cost amount which will be given to you prior to closing. This will need to be prepared ahead of time. Typically a Certified/cashier’s check can be done through your bank. NO CASH OR PERSONAL CHECKS will be accepted.
COPY OF CONTRACT WITH THE SELLER: Have a hardcopy of the contract with you. As you are presented with paperwork to sign, there may be questions that pop up. As a Realtor, I will help with navigating and make sure that you, the buyer understand your contract fully.
GOVERNMENT ISSUED PHOTO ID: A valid driver’s license or passport is needed to verify you are who you say you are. The name on these documents needs to match the name(s) on the title and other documents. If you are a newlywed, your ID must also match that of the paperwork.
FINAL WALKTHROUGH: As your Realtor, we will schedule a final walkthrough 24hrs before the deal actually closes. This is not to be confused with a home inspection walkthrough.
A FEW TIPS FOR CLOSING DAY: The final signing of paperwork is done at the Title Office. A few professionals will be present at the meeting. A title officer, loan officer, You (the buyer) and I personally like to be present. Realtors are not required to be there and neither are the sellers.
GIVE YOURSELF TIME: Schedule in 90 mins-2 hrs. Things happen–people get stuck in traffic, a missing document, a misspelled name etc. Either way you don’t want to be rushing to your next appointment. If so, this could delay your closing.
Your keys will either be there at the title office, or you will be given access to a lock box. It’s at this meeting how your keys get transferred will be discussed. Occasionally we know ahead of time.
While I aim to answer all my client’s questions prior to the closing, you may have last minute questions. If so, be ready with your questions. It’s easier to ask while the professionals are all in one room as opposed to chasing them down after the deal is completed.
You will want to print this checklist to keep track of your closing steps.
Once this meeting is over, it’s time to book the moving truck, move in, and CELEBRATE!
