Get Ready For Closing Day!

Well, we've made it to the final step to buying a home or investment property. You're almost ready to close (aka settlement).. But there are still things to do just prior to closing day. So here's the typical closing process.

First off, your mortgage lender will put you through the most rigorous steps for final loan approval. This means following their directives and providing them all of the documentation they require. While you may exclaim you've already given them everything requested, don't despair. Some lenders update their records and documentation just before your application goes through the lender's underwriting department. Most times your file is complete and your file is stamped approved. But if they come back and ask for more, just smile, grit your teeth and provide it. Underwriters are hired for their focus on detail and following the rules. If you play the game, your file will be given a "clear to close". In other words, we are ready to meet at the closing table.

If you are closing on a home or a multi-family house-hack, you have to move! Are you packed??!! You will be surprised at how fast the closing date will come. If you are purchasing another type of investment property, there is also a lot to do prior to taking possession.

A day or so before closing you will have an opportunity to do a "walk-through" of your property. Here's your chance to see that everything is still in the same condition that it was when you decided to purchase the property and no one dropped a piano through the floor! (Ok, that's a little extreme, but movers for the seller may cause damage, or move out the refrigerator by accident that was included in your sale.) Take advantage of the walk through..you'll be glad you did.

Home buyers...Have you made your calls to change the utilities? Have you purchased a home owner's insurance policy? If you're buying an investment property, there's a little more involved, such as verifying Occupancy Permits, preparing new leases for your tenants, ensuring any deposits are properly transferred to you and so on. Rely on your agent and the settlement company to ensure everything is covered and ready for transfer of the property at closing.

In these last few days, your title/settlement company will be in contact with you and your agent for any final documentation you need to verify. If you're the seller, the settlement company will make sure everything is ready to complete the transaction (mostly reflecting the local Borough's tests, inspections, etc.) Either the settlement company or your agent will inform you, the Buyer, of how to provide your payment for what cash you may need to provide at closing. Often this money is provided in the form of a cashier's check from your bank, but wire transfer is generally available as well. Most important is to know your closing costs prior to coming to the table.

Just plan ahead so that your funds are available when you arrive at the closing table and sign all final documents...and get your KEYS! Congratulations!!

If you missed the first 5 steps, feel free to browse back through the blog postings. Thank you for reading and sharing. Your suggestions for future blogs are always welcomed and encouraged. Gary