5 Tips For A Hassle-Free Closing On Your Home

If you have ever bought or sold a house, you know what a challenging process it can be. Finding a home that meets all of your requirements, or finding a willing buyer, can be a difficult process. However, you should keep in mind that once this process is over, your work is not done. The final stages of a real estate transaction, known as the closing, can be fairly complicated in itself.

The following is a set of tips that can help you during this process.

1. Make Sure You Understand the Closing Process

If you are a buyer, you should make sure that you have reviewed everything that has been done in regards to the house before the closing takes place. You should know all about any title work, service, and inspections that have taken place. If the contract requires the seller to do some repair work, you need to confirm that this work has been done to your satisfaction. Also, make sure that the lender is aware of the time and date of the closing and possesses copies of any addenda to contracts.

You also need to get homeowner’s insurance and change the name on the utility accounts. Make sure you familiarize yourself with closing documents ahead of time and are sure that you have all of the money you need. Schedule a walk-through as well, so that you can see for yourself that everything is in order prior to closing. If you are a seller, it is equally important that you understand the process, so that you know you are getting a fair deal.

2. Be Prepared for a Delay in the Closing

If you are the seller in this situation, you may have trouble clearing a title, and this can lead to concern on the other side about a locked-in interest rate. Or if you are the buyer, you may have a problem securing the financing you need, and this could potentially lead to sellers looking at contingent contracts from other buyers. If the original contract does not close at the proposed time, the seller could go on to the next offer. Though this does not usually happen, one should be prepared in order to do what is possible to avoid this situation.

3. Make Sure You Properly Go Through the Final Steps to the Closing

Before the closing officially takes place, you want to be sure that the contract conditions have been met, for both of your best interests. Make sure that everything on the closing documents is correct before signing them. For both the buyer and the seller, it could help to create a checklist of things that you need to consider before finishing off these matters.

4. The Buyer Should Have the Following:

• A money order or cashier’s check for the amount that is specified on the final settlement costs statement
• The good faith estimate given by your lender
• Proof of a policy for homeowner’s insurance
• Some form of identification, such as a passport or driver’s license
• Your personal checkbook, just in case other charges come up at the closing

5. The Seller Should Have the Following:

• Keys, garage door openers, padlock combinations, and security system codes (if applicable)
• Owners’ manuals for any appliances included in the sale
• Your personal checkbook for closing costs or any other last minute expenses

As you can see, there is a lot to consider when going through the closing process. However, if you are shrewd and make sure that you are prepared for any situation, it should go well.

Jodi Bakst has been helping homeowners in Chapel Hill, Durham, and throughout the Triangle since 1997. She regularly blogs about real estate and local interest topics important to buyers & sellers.