A Home Of Your Own
Buying Your Home
Contract To Closing
After a number of months planning, searching, and finding your new home, the big day is here. It’s finally Closing Day — an exciting time for all involved but there are many things to know in advance so you’re properly prepared for closing on a house.
Closing on a house is not something we do everyday unless you’re in the real estate business. Home buyers need to know what to do and how to be prepared. The most important thing to remember is to lean heavily on your real estate expert, Ted Weaver.
How long does it take to close on a house?
Closing on a house, also referred to in some place as settlement or escrow, is typically held at the lender or closing attorney’s office. The closing date should be established in the original contract as negotiated with the seller. The time and location of the closing is generally set in collaboration with the buyer so be sure to coordinate with your lender a time that works for you based on your schedule. Generally you will need at least 30 minutes for closing but set aside a full hour to ensure enough time.
A Closing Disclosure (CD) should be sent to you at least 3 days prior to closing to review and confirm the financial numbers of the purchase. Assuming it’s accurate, the CD will have the amount to bring to closing in the form of a cashier’s check (personal checks are not allowed).
Here’s what will happen at the closing:
- You will review and sign all of the loan documents. The closing attorney or agent will summarize the terms of each document to ensure your understanding.
- If you wish to read in detail every document (certainly your right) be sure to express this desire in advance so they can be sent to you a few days before closing. There are many documents to review and closing could take multiple hours if done at the closing table.
- Make sure to have a picture ID with you.
- You will need to have proof of homeowners insurance. In all likelihood your insurance agent will provide this directly to the lender in advance; but be sure to verify this prior to the closing date just to be safe.
- You will provide a certified or cashier’s check to cover the down payment, closing costs, prepaid interest, taxes and insurance as documented on the CD. You can also provide these funds in advance via wire transfer.
- Your lender will distribute the funds covering the difference between your down payment and the final sale price.
- The seller will be issued their net sale proceeds based on the final CD.
Once everything is signed, you will receive keys to your new home!
Typically possession of your new home is provided once closing is complete but this can vary, depending on seller needs and the terms negotiated at the time of contract. So be sure to check with Ted Weaver to understand these terms and your rights as the new homeowner.
Once you take possession, make sure to change the locks and the garage door keypad code. There’s no way to know who has copies or knowledge of either (friends, family, neighbors) and so for the safety of you and your family, always have these items changed within the first 24-48 hours after taking possession.