Finalize your Mortgage
If the contract of sale includes a financial contingency period, you have a set amount of time (as specified in the contract) to secure a loan to purchase the home. It is important to be very responsive to each request by your lender during this time to ensure a quick and easy loan approval prior to closing.
Schedule a Home Inspection
Because you want to discover any major problems with the home before you own it, it is necessary to schedule a third party inspection. By scheduling the inspection right away, you will have time to address any issues with the home during the due diligence period.
Three Weeks Before Closing
Schedule an Appraisal
Your lender or bank requires an appraisal by an independent party in order to finalize the mortgage. The appraisal determines whether the purchase price is higher or lower than the actual value of the home. The appraisal is typically a closing cost for the you. If the appraised value is below the purchase price, a renegotiation of the contract may be necessary.
Perform Title Search
This step is completed by the title company. They are responsible for issuing title and providing title insurance, and in doing so will make sure there are no issues with the property such as any outstanding mortgages, unpaid taxes and restrictions that may impact your ownership of the home after closing.
Book your Movers
It’s recommend to schedule a mover at least three weeks prior to your move-in date. Additionally, you should start packing at this time.
Two Weeks Before Closing
Secure Homeowner's Insurance Quotes
As part of the financing approval process, your lender needs your homeowner’s insurance information. Don’t forget that flood damage isn’t covered by your typical homeowner’s insurance policy, so you'll need to purchase that coverage separately. You will complete the purchase of your homeowner's insurance at closing.
Consider a Home Warranty
A home warranty covers appliances and major mechanical systems. Typically, the seller sets an amount they will pay for a home warranty and the you select the home warranty company within that price range.
Schedule a Time For Closing
As a courtesy to you, your agent will contact all parties involved in the sale to arrange a time for closing. This meeting is most often held at the offices of the title or mortgage company.
One Week Before Closing
Schedule and attend Final Walk-Through
The final walk-through typically occurs one or two days before closing and is an important step. Use this opportunity to make sure all repairs have been made by the seller and there are no last-minute problems with the home before closing.
Plan your Move
Be sure to make a plan for moving in to your new home, including the little details like changing your address and transferring utilities to your name. You will have more time to complete these steps if you have arranged for a seller lease back.
Use Certified Checks
You will need certified bank or cashier’s checks from your bank in order to pay final closing costs to the title company and seller. Make sure you bring personal checks as well in case any last minute payments are needed at closing.
Day of Closing
At the closing all required documents are signed and funds are transferred. Typically, both parties meet at the title company at different times to sign all required documents.
What to bring to the Closing:
- Photo ID
- Certified checks from the bank
- Copy of homeowner's insurance
- All sale-related documents (inspection reports, copy of contract, etc.)
Once both you and the seller complete the closing process and the title company has received the funds, you will receive keys to the property and the process is complete. Congratulations!