The day is finally here. You will finally go through the paper work and sign the documents. You are now the homeowner. Take a deep breath, this should be an exciting time and our goal is to have a happy and fun closing.
Make sure you do a walk through of the property you are buying. The home should be in the same or better condition as it was when you put the offer to purchase on the house.
If repairs were required by inspection or contract then make sure they are completed. Look for water stains that you did not see at the time of inspection. Turn on all water and flush toilets. If there is an item that was in the contract or the inspection and it is not completed, make sure an amendment is done, that the item will survive closing, or the issue will be resolved at closing.
This is needed because the contract does not survive closing, and you want to make sure that you cover your concerns at closing or have a document to protect you after closing.
Within 24 hours before your closing you should have a copy of the HUD settlement statement more commonly called closing statement in our market.
This will give you time to ask questions and understand the statement and confirm numbers are correct. http://www.hud-1.info/hud-1-videos/hud-1-hud-1-settlement-statement-hars-consumer-knowledge-series/
This closing statement is a form that reflects everything financial that has been agreed upon in the contract. It will be divided into two sections.
The right column will have the sellers information and the left will be the buyers side. Once this is verified and any corrections made, you can feel comfortable that the closing will go smoothly.
Some things that can be missed on the closing statement, and that you need to ask to see, would be things the seller is paying for above closing cost. They are most likely on the form but sometimes locating them is a challenge. This is a sample of what a HUD settlement statement looks like.
Before closing it is a good to learn a little about title insurance.http://www.homeclosing101.org/whyneed.cfm This website explains title insurance and the benefits. I recommend it be purchased on every closing. It is a one-time payment made at closing that you will most likely never need, however when a title problem occurs and ownership of the property is challenged, you will be grateful to be able to turn it over to your title insurance company.
If you are a person who will want to read every document please ask the attorney to prepare in advance for you. It is very stressful to try to read these documents with all parties waiting for you to finish. If you are not a person who reads every document, then make sure you understand what you are signing. Check to make sure your loan has the terms you thought it did and that the interest rate is what you were quoted.
Now the fun begins. You will need your drivers license or an ID with a photograph. In some cases you may need a second form so be prepared. You will also need a check just in case funds end up being a little more than the closing statement. Most closing attorneys require you to wire your funds needed to close. Check to see if they will take a certified check or if you need to wire down payment.
It is time for you to meet the other party and sign, sign, and sign. You will sign about eight copies of the HUD statement. This is a document you will want to make sure you put in a safe place where you can find it at tax time, depending on your loan type you should be through signing, in under an hour.
Once you have finished signing you are almost there. The attorney will send required documents to the lender who will issue what is called a funding number. Once that is done you can say you are homeowners.
While waiting for the funding number, which can take from five to 30 minutes, this is the time to exchange information with sellers. If repairs were required you will have checked to make sure they were done at the walk-through before closing.
You can now review receipts, if work was done, get confirmation of termite bond and most importantly pick up the keys to your new home. The attorney will then hand out checks to sellers and agents and the buyers can celebrate. At my closings a hug is required to celebrate the very exciting process that allows you to live the American dream.
Please feel free to email Nancy@Minor.net with any questions you may have about the closing process. If you need a home so you can get a hug at closing call 404-955-7653 (404-955-SOLD)New on the market this week:
39 Thrasher Street priced at $329,900 shown by appointment.
Open House Downtown Historic Norcross
Sunday 1/19 2:00 PM to 4:00 PM
85 Skin Alley. Priced at $425,000