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Step 6

Getting Ready to Finalize Your Home Purchase

Closing is the final step in the homebuying process where the legal documents are signed, funds are transferred, and you become the owner of the property.

 

At Closing The final step in a real estate transaction where all legal documents are signed, money is exchanged, and ownership of the property is transferred from the seller to the buyer. closing , you’ll finalize your mortgage, pay closing costs, and receive the keys to your new home, making the purchase complete and allowing you to take possession of the property.

1

Finalize documentation with your mortgage lender

  • Be sure to regularly check your email inbox for messages from your mortgage lender and respond quickly. The lender will likely reverify information such as your income, employment, or assets and may need additional documents from you.
  • Do not make any financial changes such as changing your job, making a large purchase, or opening a new credit card. Major financial changes can put your mortgage approval in jeopardy.
  • Obtain a Homeowners’ Insurance An insurance policy that protects your home and belongings from damage or theft, and provides liability coverage if someone is injured on your property. homeowner’s insurance as your lender will need a copy of the Declaration Page A summary document of your insurance policy that lists your specific coverage, limits, deductibles, premium, and personal information. declaration page and proof that you have paid the first year’s premium. Check with your lender for the minimum amount of coverage you need to have.
  • Review your Closing Disclosure A five-page form that provides the final, detailed information about your mortgage loan, including loan terms, projected monthly payments, and all final closing costs. It must be provided by the lender at least three business days before closing. closing disclosure which your mortgage lender will provide at least 3 business days prior to your closing. The closing disclosure is a five-page document containing the final details of your mortgage loan including all the fees and costs to close, the proposed monthly payment, and the terms of the mortgage. It will also provide you with the amount of money you will need to bring to closing.
2

Get Your Funds In Order

Check with your settlement agent or Title Company A third-party organization that verifies the legal ownership of a property and ensures a property’s title is transferred smoothly and legally. title company for the form of payment they will accept at closing. Personal checks and cash are generally not accepted. They usually require the funds in the form of a Cashier’s Check A special type of check that is guaranteed by a bank, rather than an individual’s personal account. cashier’s check or a Wire Transfer A fast and secure way to move money electronically from one bank account to another, either within the same country of internationally. wire transfer . If you are wiring the funds, be sure to get the wire instructions directly from the settlement agent to avoid wire fraud.

3

Complete the Final Walkthrough of the Property

The final walkthrough is a final inspection that gives you an opportunity to confirm that the property is in the condition expected, everything is in working order, and the previous owner’s belongings have been removed. It is usually scheduled with your real estate agent within 24 hours of closing. If you find any new damage or unaddressed issues, you may want to delay closing to protect your interests.

4

Utility Activation

Once the closing date has been confirmed, you should contact the local utility companies to have the gas, electricity, and internet services transferred into your name on the day you become the owner of the property.

5

What to Bring to Closing

  • Valid, government-issued photo ID such as a driver’s license or passport
  • Certified funds or proof of wire transfer
  • Homeowners insurance declarations page and proof of the first year’s premium paid
  • The purchase contract and other relevant documents
  • Your checkbook in case of unexpected fees