A home inspection tells you if the home has any issues. Inspections are not always required but are typically a good idea. Go over the inspection report in detail with the inspector to make sure you are familiar with any problems, their severity and the estimated cost to fix them. Additionally, you may also want to get your home checked for radon and pests, which are additional costs. If the inspector finds problems, you may be able to get the seller to pay for necessary repairs or lower the price to adjust for the cost.
2. Home Appraisal
Your lender will require your house be appraised by a professional, who is usually provided by the lender. The appraisal gives you a detailed report on the value of the home. If the home’s appraised value is less than the purchase price, you will need to either make a greater down payment or negotiate with the seller to lower the price. A lender will not give you a loan for more than the appraised value.
Get Your Funds Collected
Make sure the funds you need for closing and in reserves are both accessible. If you need to pull money from an investment, do it right away. Keep the paperwork for the transaction to show your lender you liquidated funds to get your down payment.
In most cases, buyers are expected to pay for homeowners’ insurance upfront, before closing. Depending on where you live, you might need extra insurance, like flood coverage. Your lender will need proof of insurance before approving your mortgage.
Change of Address & Cancel or Transfer Utilities
A change of address can be done online or at your local postal office. Doing this ahead of time can save you time and hassle in the long run by not having you get your mail at your new home. Canceling and transferring utilities is another housekeeping item that is important to coordinate. Start with a list and contact each utility company to let them know when you are moving and to discontinue service and let them know the address of your new home you will be taking over the utilities after closing.
You will be allowed to do a final walk-through of your new home before closing with your agent. This allows you to make sure any items that should be there, as per your contract, remain. It also lets you check the condition of the home to make sure no extra damages have occurred. If you find anything different from what you agreed upon, you may postpone the closing to give the seller time to fix the problem.
This is the day when you sign the mortgage documents and officially gain ownership of the property. We always strive to be at closing with you, as well as the seller, the seller’s agent, the closing officer and perhaps the mortgage broker. You will need to bring ID and a cashier’s check to pay closing costs. Your spouse will also need photo ID. Check with your Realtor about the details of your closing.
After closing it is easy to be excited about your new home but do not forget to change the locks. While you get the keys to your new home at closing, there is no telling how many copies have been made and who still has one. This can be your first DIY project in you new home or call a professional locksmith.