Pro Tips For Closing On A Home
Closing is the final step in the home-selling process. It’s a lengthy, weeks-long process that requires buyers to complete numerous tasks before they can seal the deal. And with so many details involved, closing can feel intimidating—especially if you’re not familiar with real estate jargon. To help alleviate this stress and make sure your closing goes smoothly, here are some helpful pro tips for closing on a home.
PRO TIPS FOR BUYERS
Meet all contingency requirements before closing day.
Most purchase agreements contain contingencies that buyers must meet to make the contract binding. These include:
- Home inspection, which gives buyers the right to have the condition of the home professionally inspected;
- Appraisal, which (in non-cash sales) allows a third party hired by your mortgage lender to evaluate the fair market value of the home, as compared to the sale price;
- Financing, which gives you the right to back out of the transaction without penalty and with a refund of the earnest money deposit, if your mortgage approval falls through (according to the time period specified in your contract); and
- Sale of the buyer’s home, which gives the buyer the right to terminate the contract if their home does not sell by a certain date.
Have settlement funds ready before closing day
If you intend to wire funds or use a certified check, make arrangements with your bank at least two weeks prior to closing. Some banks require an appointment, so check their hours and procedures ahead of time.
Carefully review wiring instructions and be wary of any last minute changes
Take extra precautions to prevent wiring funds to the wrong bank account. Fraudsters may attempt to trick you into sending money by email, text message or phone call. Always verify the name and phone number of the person instructing you to wire funds prior to doing so, and consider using a money transfer service.
Be available and prompt with communication
When it comes to closing, you’ll need to be prepared to provide and sign a lot of paperwork. Some documents can be signed online, while others may need to be signed in-person in the presence of a notary. Prepare yourself and your schedule accordingly so that you can respond promptly. Remember that it takes a team—including your real estate agent, lender and closing agent—to close. If you have any out-of-town obligations or trips within the last two weeks of closing, make sure to let your agent know about them as soon as possible so arrangements can be made for your loan documents to be delivered via overnight mail or other delivery methods.
Review documents carefully
Reviewing your Closing Disclosure prior to closing day is the best way to protect yourself as well as your lender. You can do this by reviewing pertinent details about your loan amount, interest rate and estimated monthly mortgage payment in the three-business day timeframe before closing. The Consumer Financial Protection Bureau’s checklist is an excellent resource for the task.
Do a final walk-through of the property
Usually overlooked, walkthroughs can be one of the best pro tips for closing on a home. While you’re closing on the home, your real estate agent will see to it that all repairs or other outstanding issues are addressed. You may want to follow up with your agent after closing to confirm that the repairs you requested from sellers have been completed.
Stay calm and time to celebrate!
Congratulations on your decision to become a homeowner! We understand that, as exciting as it is, you may be feeling nervous about the process. However, we want you to know that your mortgage is one of the most important financial decisions you’ll ever make.
CLOSING ON A HOME WITH GRAND STRAND LAW GROUP LLC
At Grand Strand Law Group, we are here to help you with our pro tips for closing on a home. We are here to help you every step of the legal way. Give us a call at 843.492.5422 and learn about how estate planning can resolve these situations before they can begin.