Buyer's Closing Checklist

 

 

Closing is the final step in the purchasing process where all funds due the seller and all funds owed by the buyer are settled. Final legal papers are explained by the closer and signed by the respective parties to finalize the purchase of the home. At the end of the closing, the buyer is now the owner of the property. 

The closing has risks of being delayed but if close attention is paid to the process, it usually happens as planned. The checklist below will help the buyer to better understand the closing process and have a successful closing on schedule.

 

o       Have your HomeBuyerConsultant provide detailed estimates of your closing costs early in the purchasing process and update the estimates as more firm costs become known. Your HomeBuyerConsultant can explain the typical costs and credits you will incur at closing. (A very rough estimate for initial planning purposes is to allow about 1.5% of the mortgage amount plus any points plus your down payment for the funds you will need available at closing.)

o      Immediately after the Purchase Agreement is signed, meet with your mortgage company and be sure all the information and up front costs that you need to provide are furnished.

o      Check with your  mortgage company a week or so later that the property has been appraised  for an amount sufficient for the mortgage approval.

o       Contact your insurance agent to purchase a homeowner's policy to protect the full value of the home.

o       Have your HomeBuyerConsultant verify the name of the closing company, address, the closing agent's name, phone number, and the time & date of the closing. Furnish this information to your mortgage company.

o       Determine (with the assistance of your agent or lawyer) the best way to hold title if more than one person is involved in owning the property and notify the title company or closing agent of your decision. (Click here for more information.)

o       Assure that an Owner's Title Insurance Policy is being purchased and paid for at closing.

o       One week before the closing date, verify that your mortgage company has completed the paper work and will transfer the mortgage funds to the closer in time for the closing.

o       If the Purchase Agreement contained contingency clauses (such as, prior sale of the buyer's current home), assure these have been satisfied or removed.

o       Assure that your HomeBuyerConsultant gets the final closing numbers to you at least 24 hours before the closing.

o       The day before or on the day of closing, obtain a cashier’s or certified check for final closing costs. (Personal checks or cash typically are not accepted by the closer.)

o       The day before closing assure you have a copy of your homeowner's insurance policy in your possession to take to the closing.

o       Attend the closing on time, pay attention to the explanations by the closer about the papers you are signing, ask questions to be sure you understand everything, and be sure you are furnished copies of all the paperwork. (If for some unforeseen reason the closing cannot be completed, reschedule a time for completing the closing.)

 

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