What Happens On Closing Day When Buying A House?
Closing day is an exciting moment for every home buyer. It marks the end of the home buying process, whereby the seller finally transfers the property homeownership to you. It can be overwhelming if you don’t know what to expect. In this guide, we walk you through the important things to expect on the closing day and how you can prepare well.
What to Expect On Real Estate Closing Day
The closing day’s activities can vary from one home buying event to another. The main determinants for the day’s activities include the state laws, the type of the home, and the argument between the buyer and the seller. Nevertheless, there are a few things that remain the same on every closing day. Here are some of them:
- The homebuyer (you) clears the remaining balances.
- The real estate agent receives the commission fees according to the initial agreement.
- Both the buyer and the seller sign the transfer ownership agreement, the closing disclosure, bill of sale, property deed, and transfer tax agreement.
- The closing agent registers a new deed with the state.
How to Prepare For the Closing Day
Here are few preparation tips to follow before you finally get the keys to your new home:
1. Choose The Right Day For The Closing Event
A home is a valuable investment. Don’t rush the process. Take your time in choosing the most suitable day. Consult with your lawyers, the bank, and the attorney day to confirm the most convenient day for them. Also, set enough time for the day because the event may sometimes last for more than one hour.
2. Walkthrough the House
Schedule for a final home walkthrough to ensure the house is still in a good position. Even if you have already done the inspections, it’s still important to walk through the property again for the last time. There could be a few things to change, and a walkthrough could help you avoid the last-minute inconveniences.
3. Prepare And Carry All The Documents
The home buying process involves several documents, and you should carry them to the closing day. These documents can include bank statements, proof of your income, mortgage forms, inspections forms, and payment receipts. Prepare the documents and keep them safe ahead of the closing day.
4. Confirm the Availability of the Attendees
The home closing day involves several people besides you (buyer) and the seller. Other people who should be present include your lawyer, your real estate agent, the closing agents, and or lenders representative. Inform them of the closing date and confirm their availability in advance.
5. Review Your Contract Again
The last thing you would want is to find hidden costs or conditions in the contract during the closing day. Be sure to review the contract to ensure everything is as per your expectations. Take note of any errors too.
6. Prepare Financially
The home can only be transferred to you when you have settled the funds. So, make sure you have the remaining amount in hand before wrapping everything up.
Common Mistakes to Avoid
Some problems can cause delays in the home transfer process. Here are few mistakes to avoid:
- Avoid end week or end month closing – most financial institutions and notaries close on weekends. If an issue arises, you will wait until Monday to resolve the issue.
- Avoid large purchases – your bank has approved you based on your account balances. Large purchases can affect your balances, and the bank might cancel the support.
- Beware of cyber-attacks when making large financial transactions.
- Do not move into the new home before the closing day.
The closing day can be overwhelming but don’t worry. Real estate agents can make the work easier for you by breaking everything for you to save on time and money. If you need help buying a home or preparing for your closing day, contact Signature Property Group today and we’ll be more than willing to assist!