How to prepare for a house closing

On Behalf of | Apr 22, 2022 | real estate | 0 comments

If you are a first-time homebuyer, you are probably excited to move into your new place and begin to make it your own. One of the last hurdles is the closing, and you should know what to expect.

Many home closings occur without any problem, but there can be last-minute issues that buyers have to deal with. If you prepare, there is less of a chance something will go wrong.

Deal with contingencies

Realtor.com discusses that if there is a contingency related to the sale, make sure you follow through and complete it. There may be a contingency related to obtaining a mortgage loan, an appraisal or a home inspection.

Conduct a title search

Hire a company to conduct a title search. This ensures there is no other party that could claim they are the owners of the house. You will also need to purchase title insurance.

Review the HUD-1 settlement statement

If you took out a loan, you should review this statement. Also known as the closing disclosure, it outlines the terms of the loan. Compare the terms to the original estimate from the mortgage company. If they do not match, contact the company and find out why.

Perform a final walkthrough

You can usually walk through the house 24 hours before the final closing. Make sure that it is in the agreed-upon condition and that the owner has moved out.

Bring all relevant documentation to the closing

The Consumer Financial Protection Bureau lists important things you need to bring to the closing:

  • Identification, such as a driver’s license
  • Closing disclosure to compare to final contract
  • Proof of wire transfer or cashier’s check for closing money owed
  • Checkbook for unexpected changes
  • Co-borrower, if applicable

Prepare to sign your name a lot, and take your time. If you have any questions, do not be afraid to ask.