Congratulations!  You’ve found your dream home; the inspection has been completed and all your ducks are in a row.  Now your just one more step to get through before you are officially a homeowner.  The closing.  The name sounds ominous, but you don’t have to worry.  If you have everything in order, your home closing should go smoothly.  Here is what you should expect on your big day:

CHOOSE THE RIGHT DATE FOR YOUR CLOSING

When you are thinking about when to schedule your closing, there is a lot to think about. For example, you want to keep in mind that it might take longer than an hour, so don’t try to schedule it on a lunch break from work. Consider taking half a day off or even just a few hours at the end of the day so that you will have plenty of time and won’t feel rushed.  In addition, you will want to think about what time of month you want to close.  Many people want to close as close to the end of the month as possible to save on up-front cash because the later you close, the less interest is owed to the lender.  However, closing late in the month has its disadvantages too. Because so many people are doing it, everyone is rushed -  from escrow companies, to appraisers, to surveyors, to insurance agents and even lender. They are all pushing to get a lot of work done in a short period of time.  And when people are rushed, mistakes are made.  Also, the later in the month you close, the sooner your first full mortgage payment will be due. So, you will want to keep all that in mind when deciding on your closing date. Closing Early Has Its Advantages

DO A FINAL WALK-THROUGH

Buyers are usually allowed to do a final walk-through before closing.  This isn’t a Home Inspection. Your home inspection should already be complete by now.  But a final walk-through will allow you to be sure that the property is in good condition and that nothing has changed or been damaged since the last time you saw it.  The final walk-through is generally arranged by your Realtor to happen anywhere from one week to 24 hours prior to closing.  Check the property thoroughly and bring a checklist with you to make sure you don’t miss anything.

Buying a House? Here's Your Final Home Walk-Through Checklist

CLOSING DAY PARTICIPANTS

Not sure who will be present at your closing?  There may be several people there in addition to the home buyers:

  • The seller and their Realtor
  • A representative from the title company
  • Attorneys (yours and your lender’s, if you have one)
  • A closing agent who conducts the meeting
  • Sometimes your lender will be there, but not always

DOCUMENTS

There are lots of documents involved in the mortgage process, and sometimes they can be overwhelming.  The bulk of your closing will be reviewing and signing various documents.  You should bring any documents you have received throughout your home buying process, including proof of home owner’s insurance, a copy of your inspection reports and any other documents your lender requested during the approval process.  Also, be sure to bring a photo id and a cashier’s check or certified check for down payment and closing costs. 

You will also receive many documents the day of your closing. The seller will sign documents that transfer the property ownership to you.  You will also get documents that pertain to your mortgage agreement and property ownership. 

Real estate transfer documents include:

  • A deed, which transfers the property from seller to buyer
  • A bill of sale
  • Transfer tax declarations

Mortgage loan documents include:

  • A mortgage note, which is your promise to repay the lender
  • A mortgage agreement that puts the property as collateral in case you can’t repay your loan
  • A loan application to review for accuracy
  • A loan estimate and closing disclosure

It’s vital for you to have an understanding of your closing documents prior to your closing so that you will understand what you are reading and signing.  Review them ahead of time and you will be ready to go on closing day.

Once you have reviewed and signed all the necessary documents, you will receive your keys and officially be a home owner. That’s another reason to take time off work…because now it’s time to celebrate!!

If you are in the market to buy or sell a home in the Memphis area, contact professional Realtor, Melissa Thompson, and let her help you with all your real estate needs. Give her a call at 901-729-9526 today!

Photo Credit: realtor.com