Preparing for Closing
The closing process involves signing legal documents, paying closing costs, and transferring ownership. Closing costs typically range from 2% to 5% of the home's purchase price and cover various fees, such as the appraisal, title search, and lender fees. These costs are usually paid at the time of closing, either through a cashier’s check or wire transfer. Review the closing disclosure statement, which outlines all fees and charges, and ensure you have the necessary funds available.
The Final Walkthrough
Conduct a final walkthrough of the home 24 hours before closing to ensure it is in the agreed-upon condition. Check that all requested repairs have been made, no new issues have arisen since the inspection and that the seller has fully vacated the property. This is also your opportunity to verify that all appliances, fixtures, and systems are working correctly and that the home is clean and ready for you to move in.
Bring a checklist of agreed-upon repairs and any issues noted during previous inspections to guide your review. Document any discrepancies with photos or notes and discuss them with your real estate agent if needed. Addressing these concerns before closing ensures that there are no surprises on the day you finalize your purchase and take ownership of your new home.
Signing the Papers
At the closing meeting, you'll sign the mortgage documents and other legal paperwork. Your closing attorney or escrow officer will guide you through each document, ensuring you understand what you’re signing. Once everything is signed and the funds are transferred, you'll receive the keys to your new home.
A few days before your closing date, you’ll receive a Closing Disclosure from your lender. This document outlines the final details of your mortgage loan, including the loan terms, projected monthly payments, and closing costs. It’s crucial to review this document carefully to ensure that everything matches what you agreed upon. If you spot any discrepancies, address them with your lender immediately. Read this article to learn more about closing your home purchase.
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The Home Buying Journey: A Step-by-Step Guide
- Step 1: Assessing Your Financial Readiness
- Step 2: Get Pre-Approved for a Mortgage
- Step 3: Building Your Homebuying Team
- Step 4: Start House Hunting
- Step 5: Make an Offer and Negotiate
- Step 6: Conduct Inspections and Appraisals
- Step 7: Close the Deal
- Step 8: Move In and Enjoy
- Resources