Preparing to Close

Preparing to Close

You're almost there - but there are still important tasks you
have to complete before the closing.

There's a lot to do in the weeks leading up to the closing so
good organization is a must. Proper scheduling can reduce your
stress and prevent any mistakes or delays.

Get Organized

Create a schedule of the items you need to complete before
closing. Set up a file with all of your purchase and closing
related documentation so you have it readily available.

Schedule Inspections

A comprehensive home inspection is a must for any responsible
homebuyer. A proper inspection should help uncover any
defects in the home - before you move in and get hit with
unexpected repair costs. Depending upon your location and
the age of the home you may need additional inspections as
well - radon, termite, septic, etc. Your attorney (if you are
using one) and realtor can help guide you through this
process, so draw on their experience.

Schedule the Appraisal

Your lender will probably hire the appraiser, but you need to
make sure it gets done on time. A satisfactory appraisal is
essential to obtaining your mortgage commitment and moving
toward closing.

Review Contingencies

Make sure that any contingencies specified in the
contract are satisfied. If the seller is required to make
repairs prior to closing, schedule a walk-through to insure
that they are properly completed - and don't hesitate to
have your home inspector review the work if you are
uncomfortable making the determination yourself.

Finalize Your Mortgage

Your lender should issue a mortgage commitment shortly after
the property is appraised (assuming the appraised value is
adequate). Contact your mortgage representative to make
sure things are proceeding as expected. Don't wait until the
last minute - if there is a problem you want to find out as soon
as possible.

Order a Survey

You'll need a survey of the property. Contact the last surveyor
who worked on the site and make arrangements at least 2-3
weeks before the closing date. If you are using an attorney,
he or she may arrange to get the survey, so check and make
sure before you order one as well.

Order Title Insurance

It is essential to make sure that the title insurance is ready for
closing day. The title company will need to do a search on the
property to uncover any potential problems with the transfer.
Make sure to leave enough time before closing, not only for
the search, but to deal with any problems that surface. If any
title problems arise, don't panic - usually these issues can be
resolved fairly quickly. If you are using an attorney, he or she
will probably arrange for the title work to be done.

Prepare Your Purchase Funds

You'll need to have certified funds available to cover the
purchase price and closing costs, so now is the time to cash
out investments or make other arrangements to free up the
cash. Your attorney can help you determine the total amount
you'll need to bring to the closing.

Purchase Homeowner's Insurance

You'll need a binder from your insurance company to verify
that you have properly insured the home - otherwise you may
not be able to close on your mortgage.

Get Ready for Moving Day

You probably want to move in right after the closing (you'll
have to if you're selling your old home the same day), so now
is the time to start preparing. You need to hire a mover
(unless you plan to handle the move yourself) and start
packing your possessions. It's also time to make arrangements
for utility shutoffs and installations - our utility checklist can
help you organize these tasks.

Schedule the Walk-Through

The final walk-through should be conducted the day of or
before the closing. The walkthrough allows you to confirm that
the house is ready and that any required repairs have been
completed. If you're buying a new home the walk-through also
gives you a chance to identify any items that have not been
satisfactorily completed.

There is a lot of
work to do in the
weeks leading up
to the closing. It's
important to get
yourself organized
and not to become
overly stressed.
If your contract
was properly
written you'll have
enough time to
finish everything -
and if you fall
slightly behind, it's
likely the closing
can be delayed a
few days until you
are ready to go.

Make a list of
everything you
need to get done.
Don't hesitate to
ask your agent to
help you get ready
- he or she is not
only there to help,
but is also a
veteran of this
process. Your
agent can run
important errands,
arrange for
inspectors to have
access to the
house, and even
help you replace a
professional who
isn't working out.
Don't overlook this
resource if you feel
you are falling
behind.

Keep a list of all
items that need to
be completed
before the closing.
Note the dates of
appointments and
check off items
that are
completed.

A little
organization - and
maybe a bit of help
from your agent is
all you need to get
to the closing table
without driving
yourself crazy.