If you are about to close on a house, your focus may be on moving in and making it your home. However, before that happens, you must go through the closing process.
If this is your first purchase, or if it has been a while since you have gone through the process, there are a number of ways you can prepare for closing. Certain issues can pop up on the day, but preparation reduces these chances.
How to prepare for the closing
The most important steps are those you take in the weeks leading up to the closing. According to Realtor.com, the first thing to do is manage any contingencies stated in the purchase agreement. Common ones include appraisal, home inspection and financing. These allow you to back out of the sale if not completed.
Another step is to clear the title and purchase title insurance. This ensures that no one else can come forth and claim ownership.
The final approval of your mortgage usually occurs days before the closing. During the time leading up to this, do not apply for any new credit cards, finance a big item or do anything that affects your credit score.
Three days before the closing, you will receive the closing disclosure. Read it over carefully and make sure it matches the terms of the original loan estimate. The day before closing, do a final inspection of the home.
What to expect at the closing
The Consumer Financial Protection Bureau discusses what to bring to the closing:
- Driver’s license or another form of ID
- Proof of wire transfer or cashier’s check for money owed
- Checkbook for last-minute fees
- The closing disclosure
- Co-signer, if there is one
During the closing, take your time to read over the documents before signing them. Ask any questions you have and prepare to sign your name a lot.