Home Mortgage Calculator - First Time Buyer Resources
Discover How To Make Closing Day Easier
What to Expect on Closing Day Checklist
You've found the home of your dreams, you've used the home mortgage calculator and calculated all of your costs, the buyer's accepted your bid and now it's finally here: closing day. Like most buyers, you're wondering what to expect and are a little nervous about the process. Here's a simple closing day checklist so you know exactly what you can expect.
All Closing Days Are Not Created Equal
There are many aspects of a closing that will be the same no matter where you live. However, there are also many differences from state to state – and even from city to city. For example, the settlement agent will always be the one running the show, but in some states they'll be a representative of a title insurance company, while in others it will be a lawyer. Talk to your own representative to find out who will be at your closing.
What to Bring to a Closing
• State issued photo ID.
• Copies of any insurance policies, such as homeowner's insurance or flood insurance. Many lenders will review these policies prior to closing. It's also a good idea to have proof of payment for these policies.
• A cashier's check for closing costs or any other remaining costs. In some cases the check will need to be made out to the seller, in others it will need to be made out to the seller's attorney. Make sure you know which party gets the check. The law states that you are entitled to receive a HUD-1 Settlement Statement, which itemizes all closing costs.
• A list of everything you require from the seller. This isn't the time to negotiate anything, but you do need to make sure you get the keys to the property, garage door openers, manuals for appliances that come with the property, service logs that detail the work that's been done on the home, or a copy of the CC&Rs (covenants, conditions and restrictions) of the neighborhood or homeowner's association. The list of documents or items you'll need will vary based on the property you're buying, but think ahead and be prepared to request what you need.
• A comfortable pen. Most buyers are blown away by the sheer number of documents they're required to sign at closing. Be sure you've brought a new pen that won't cramp your hand, because by the time you're done you'll feel like you've signed your life away.
Closing Horror Stories and How to Avoid Them
Ideally, the closing process is long but fairly simple. However, as with anything, there are times that it can go horribly, horribly wrong. Here are a few examples of closing horror stories and simple ways to avoid them.
• A Key-Free Closing. You might wonder how the seller could forget to bring the keys to the property, but it happens more than you might think. There are countless tales of frustrated buyers who signed on the dotted lines but were unable to move into their homes because they didn't have keys. The simple way to avoid this issue – don't sign a document until you see the keys sitting on the table.
• Time-Frame Mix-up. Unfortunately, there are many things that can go wrong and lead to the closing day being pushed back. This can be a huge issue when the buyer's already hired a moving company, has someone moving into their current home, or they've otherwise made huge plans around the specific moving date. The simple way to avoid this issue – be diligent and follow up with the seller's attorney, the title company, and anyone else who could potentially hold up the closing.
If your real estate closing starts to overwhelm you, just keep hold of one thought – once the closing is done, the entire process will be over and you can finally relax in your new, fantastic home.
You've found the home of your dreams, you've used the home mortgage calculator and calculated all of your costs, the buyer's accepted your bid and now it's finally here: closing day. Like most buyers, you're wondering what to expect and are a little nervous about the process. Here's a simple closing day checklist so you know exactly what you can expect.
All Closing Days Are Not Created Equal
There are many aspects of a closing that will be the same no matter where you live. However, there are also many differences from state to state – and even from city to city. For example, the settlement agent will always be the one running the show, but in some states they'll be a representative of a title insurance company, while in others it will be a lawyer. Talk to your own representative to find out who will be at your closing.
What to Bring to a Closing
• State issued photo ID.
• Copies of any insurance policies, such as homeowner's insurance or flood insurance. Many lenders will review these policies prior to closing. It's also a good idea to have proof of payment for these policies.
• A cashier's check for closing costs or any other remaining costs. In some cases the check will need to be made out to the seller, in others it will need to be made out to the seller's attorney. Make sure you know which party gets the check. The law states that you are entitled to receive a HUD-1 Settlement Statement, which itemizes all closing costs.
• A list of everything you require from the seller. This isn't the time to negotiate anything, but you do need to make sure you get the keys to the property, garage door openers, manuals for appliances that come with the property, service logs that detail the work that's been done on the home, or a copy of the CC&Rs (covenants, conditions and restrictions) of the neighborhood or homeowner's association. The list of documents or items you'll need will vary based on the property you're buying, but think ahead and be prepared to request what you need.
• A comfortable pen. Most buyers are blown away by the sheer number of documents they're required to sign at closing. Be sure you've brought a new pen that won't cramp your hand, because by the time you're done you'll feel like you've signed your life away.
Closing Horror Stories and How to Avoid Them
Ideally, the closing process is long but fairly simple. However, as with anything, there are times that it can go horribly, horribly wrong. Here are a few examples of closing horror stories and simple ways to avoid them.
• A Key-Free Closing. You might wonder how the seller could forget to bring the keys to the property, but it happens more than you might think. There are countless tales of frustrated buyers who signed on the dotted lines but were unable to move into their homes because they didn't have keys. The simple way to avoid this issue – don't sign a document until you see the keys sitting on the table.
• Time-Frame Mix-up. Unfortunately, there are many things that can go wrong and lead to the closing day being pushed back. This can be a huge issue when the buyer's already hired a moving company, has someone moving into their current home, or they've otherwise made huge plans around the specific moving date. The simple way to avoid this issue – be diligent and follow up with the seller's attorney, the title company, and anyone else who could potentially hold up the closing.
If your real estate closing starts to overwhelm you, just keep hold of one thought – once the closing is done, the entire process will be over and you can finally relax in your new, fantastic home.