Final Details Prior to Close
Before closing, the buyer will make their final walk through to make sure all necessary repairs that have been agreed upon have been completed.
A few days before the closing, your real estate agent will contact the parties involved in the closing, advise them of any needed documentation and forms needed, and any other action necessary for closing, so that the entire closing can proceed on the date and time planned.
There are a number of details prior to closing that you need to be aware. Your real estate agent will help you create a checklist of all the things you will need to do to turn the property over to the new owners. Proper planning greatly reduces stress and helps pave the way to a smooth closing:
- All documents are collected by the title company including sales contract, mortgage papers, title commitment, homeowner association transfers, property tax information, etc.
- Appraisal and survey are ordered by the title company
- Closing date and time is scheduled
- Buyer should receive closing documents in advance in order to review
- Final walk-through of the property to ensure all repairs were made and everything is in order
- Prepare a cashiers check in the amount equal to your down payment plus closing costs less your earnest money
- Make sure that all of the local services - electricity, gas, lawn care, cable - have been dealt with or changed
It is important that you understand every document you are signing.
Closing Costs Checklist
- First loan payment
- Legal fees
- Escrow fees
- Title service fees - establish the seller's ownership and transfer ownership from seller to buyer
- Recording service fees
- Loan underwriting fees
- Home & pest inspections
- Homeowner's & hazard insurance - Protection against physical damage to your new home by fire, wind, vandalism and other causes. Prices for homeowner's insurance vary depending upon the value of the home, the location and the insurance agency.
- Survey
- Taxes - Most lenders require that four to eight months' taxes be collected at closing and held in an escrow account. An escrow account is a reserve account set up by your lender in which you deposit enough money to cover the first few months of mortgage insurance, hazard insurance and property taxes. The purpose of the escrow account is to ensure that sufficient funds are available to cover these expenses once you've purchased your home.
- Certified Check to Cover Closing Costs - A few days before closing you will be told what your final closing costs will be. You must have enough money to pay these costs on the day of closing. Usually a certified check is required for payment rather than a personal check.
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