What to Expect at the Closing of your House

What to Expect at the Closing of your House?

First off it’s closing is an exciting day as it is the day you become the legal owner of your new property! This date has been agreed upon in the contract and you can expect it to be a while once you finish negotiations (moving does take time!). 

What should you do before Closing?

For this meeting it’s important to prepare, not because it's hard, but just to make it less stressful on yourself. It's essential to have this all done and handy. So gather your team and follow the checklist.

• Do your homework!: Below are the most common tasks to do before closing 
• Home inspection: This is one of the more known things to get done in the closing process. A home inspection is when a neutral party comes to make sure that the home is in great shape or if things need to be replaced before the move in in order for the closing to still happen.
• Appraisal: This is required to make sure you are not paying more than what the house is worth. This can be done by an outside professional appraiser and the fee will be shown in the closing costs.
• Homeowners Insurance: This is a must for all homeowners as it protects you from repairs, rebuilding, or any lost or destroyed items in your home. This can usually be found in your monthly mortgage payment. 
• Final Walkthrough: This typically happens 24 hours before closing. This allows the buyers to make sure everything is in all sets, the sellers belongings will be completely cleared out and you will get to make sure everything is in the condition that was promised in the contract. During this time, test everything! This is your last chance to bring something to the attention of your real estate agent. 

How Much Does it Cost to Close?

Typically a closing of a home will be around 3-4%. In that percentage is all the costs of things you got done before the closing like the home inspection and homeowners insurance. It will also have your real estate agents compensation for their help. Be prepared that some fees may even have to be paid before closing like the home inspection. 

The best way to prepare for these costs is to look at the Closing Disclosure before the big day. Make sure you go over all the fees and final terms to make sure everything is correct. Also double check the monthly mortgage amount and make sure it’s not more than 23% of your monthly income. It may seem overwhelming but going over these fees will help you understand everything going on and make sure there were no changes that you weren’t aware of.

Where does Closing take Place and what should I bring?

Closing will most likely take place at your escrow office. For this meeting bring with you a photo ID, the documents that you have looked over the past view days and a cashiers check. If you have any questions on anything else to bring, reach out to your real estate agent and they will be happy to help. 

What happens after the Closing Meeting?

You move into your new home!