With closing day approaching, you are probably excited to be a new homeowner. Although closing day may seem like just an event in which you sign a lot of documents (which you will do), there are some other components about closing day that can delay, or even derail, the closing.
Knowing what to expect, and preparing in advance, can prevent surprises and help the process go smoothly.
Ensure the house is ready
According to Realtor.com, if the home inspection revealed issues that needed repair or replacement, you want to ensure these are complete. The day before closing, perform a final walk-through of the house. Make sure everything is up to your standards and that the previous owners have moved out.
Clear the title
To prevent anyone else from claiming the house is theirs in the future, hire a title company to perform a title search of the property. This will identify any liens or other issues with the title.
Review the loan documents
You can request the closing disclosure, also called the HUD-1 settlement statement, up to three days before closing. Take the time to review this document and make sure the mortgage details, such as interest rate and loan term, are correct.
Prepare for the final day
According to the Consumer Financial Protection Bureau, there are a number of things you should bring to closing day. Bring an ID, a wire transfer or cashier’s check for the closing costs, a checkbook for last-minute fees, the closing disclosure and anyone who will be co-signing the loan. At the closing, do not be afraid to ask questions if you are unsure of anything. Take as much time as you need to read over paperwork and sign the important documents.
