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You've found a house, made an offer, applied for financing, and things
are moving along. You set a date for closing. Now what?
Closing is a complex process, so appoint yourself manager of the
close. Organize yourself by setting up a file, or a filing system. If
you don't already have a daily organizer, use a small notebook to keep
track of daily to-do lists. Start a log and record every contact
regarding the home. If a notice arrives in the mail, jot it down. If
you send out a document, make a note.
You'll have contact with lots of people. You'll hear from your
Realtor, attorney, lender representatives, insurance agent, and the
movers. If you're planning to have work done on the new house, add to
the list perhaps painters, contractors, decorators, and landscapers.
If you speak with someone on the phone, write down the date, time,
number, name, and details of what was discussed. Later, if there's a
problem, you'll be able to track it down. Even better, keeping a
detailed log will most likely prevent problems.
On
closing day, a great deal of business will be taken care of. You can
ensure a smooth closing by checking everything beforehand to see that
tasks are completed and forms filled out accurately and completely. It
is your right to formally request to see the closing documents 24
hours in advance of the close.
You will need an exact tally of closing costs before you show up at
the close. You'll need to bring a cashier's check or a money order to
cover the full amount of the down payment less your earnest money,
plus all closing costs. Bring extra cash as well, just in case there's
a miscalculation.
The following is a list of the items involved with the close. You may
not see all of them until the close. Confirm that all the documents
are filled out properly and accurately before you sign anything.
--The final walk-through usually takes place a day or two before the
close. Check to see that all required repairs are completed. If they
are not, or there's new damage, you can ask for compensation, or that
an escrow account be set up to cover the costs.
--Pest inspection and environmental inspection are sometimes required
by the lender. If there are any problems, these should be addressed
before closing.
--Deed. There are several types of deeds that are used for the purpose
of transferring property.
--Mortgage or deed of trust. This document secures the property as
collateral for the loan.
--A mortgage note or promissory note is a companion document to the
mortgages and details the terms of the loan.
--Truth-in-Lending Disclosure Statement. Any questions about the
lender's fees or charges, or the cost of the loan, should be addressed
well before the closing.
--Hazard or homeowners' insurance policy/policies should include your
name and the name of the lender.
--A survey may be required by the lender, and then reviewed for
accuracy and/or any problems.
--The Uniform Settlement Statement is a standard HUD form that
itemizes all costs associated with the close.
Copyright 2004
PropertySource Network |
