Shopping for your forever home at the time can often feel like climbing a mountain. There are so many crucial steps that are required before reaching the top. Even when you thought everything was completed…there is one final step before you can exchange keys: closing on the home.
Closing is a very detailed and sometimes long process that requires buyers and sellers to complete several tasks before they can seal the deal. Below are 9 helpful tips for buyers to help facilitate a smooth and stress-free closing.
9 Tips for Smooth and Stress-Free Closing
Go through each of these tips in ensure a smooth and stress-free closing.
Tip 1: Make sure all contingency requirements have been met before closing day.
Majority of purchase agreements, also known as sale contracts, contain contingencies that buyers must meet for the contract to bind.
These contingencies include:
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- Home Inspection – A home inspection gives a buyer an opportunity to have the home professionally inspected. This option is highly recommended, so the buyer knows the condition of the home they are purchasing. Without a home inspection, buyer’s go into a home without knowing if there are any major issues which then leads to stress and more money to be spent in order to fix the issues.
- Appraisal – In a non-cash sale, your mortgage lender will hire a third party to come out and evaluate the fair market value of the home as compared to the sales price of the home. If the appraisal amount comes back less than the sales price of the home, in most cases, the seller has the option to lower the sales price of the home, or the buyer will have the right to opt out of the contract without any penalty.
- Termite Inspection – A termite inspection is a must have when using a mortgage lender. This is because no mortgage lender wants to loan money for a home that is currently active with termites. Once the termite inspection has been completed and termites have been found, depending on your contract, the seller will be responsible for having a termite treatment completed before finalizing any document for the closing transaction.
- Financing – This gives buyers the right to back out of the closing transaction without penalty and with a refund of the earnest money deposit if your mortgage approval falls through.
- Sale of the buyer’s home – This contingency gives the buyer the right to terminate the contract if their home does not sell by a certain date. Most contracts with this type of contingency will list the appropriate amount of time that the buyer must sell their home.
Tip 2: Have all settlement funds ready before closing day.
Do not wait until the day of closing to decide if you want to wire the funds or pay with a certified check from your bank. Some banks may require an appointment to wire funds and sometimes a wire could take several hours before hitting the other account. Make sure to contact your bank ahead of time to find out their hours and methods.
Tip 3: Make sure to review the wiring instructions and be cautious of any last-minute changes.
Fraudsters can use email, text, and phone calls to trick buyers into wiring their closing funds into the wrong account. This can cause many unwanted issues before closing day. It is very important to always call your closing attorney to verify wiring instructions before transferring funds.
Tip 4: Always be available and timely with communication.
Be prepared to provide and sign paperwork. While some documents can be signed online, others will need to be signed in person in the presence of a notary public. Preparing yourself accordingly along with your work schedule will help with responding promptly.
Good communication between all parties involved is fundamental for a smooth and stress-free closing. This includes the buyers, sellers, real estate agent, mortgage lender, and closing attorney. Tell your real estate agent and closing attorney if you will be out of town within two weeks closing. Also inform them if you have any work obligations that could interfere with the closing.
Tip 5: Always be flexible.
Not all closing transactions are the same, every closing transaction differs in certain aspects. Be patient during the closing process. The transaction may be delayed for reasons beyond your control. Expect the unexpected and remember every individual involved is working hard to close your transaction.
Tip 6: Prepare yourself for final fees.
Buyers sign several different legal documents and are generally required to pay closing costs for certain things, such as their loan application, loan origination fee, title search, title insurance, and the appraisal fee.
Closing fees vary depending on the contract signed between you and the sellers. The majority of these are one-time fees and each will vary. There are no set fees that one individual must pay. Buyers and sellers will get together to determine what each individual must pay at closing.
Tip 7: Always review documents carefully.
You can always review your closing disclosure (CD) or settlement statement prior to the day of closing. These documents include important details of your loan and estimated monthly mortgage payment. Mortgage lenders are required to provide you with your closing disclosure three business days prior to the day of your closing. A few baseline items to confirm include:
- The correct spelling of your name
- Your correct address and contact information
- Interest rate
- Loan amount including the type of loan and loan terms
- Any information related to the seller’s fee coverage
During the closing process you will receive an Estimated Settlement Statement and the Final Settlement Statement from your mortgage lender or closing agent. The Estimated Settlement Statement is only an estimate on the funds needed for closing. The Final Settlement Statement is the finalized document that shows the accurate funds needed for your closing transaction.
It is important to review these documents for accuracy and immediately alert your closing agent or mortgage lender if you find any inconsistencies.
Tip 8: Verify with your closing agent when the sale will be final.
Finalizing the sale, in most instances, is when you sign all final documents, money is disbursed, and when the county recording clerk enters the documents into public record. It is important to not open credit lines, make major purchases, or change jobs until after the transaction is officially closed. Doing so can impact any last-minute credit checks or verification of job status, which could jeopardize the sale.
Tip 9: Always do a final walk through of the property.
It is important to confirming that any repairs you requested from the seller have been. Make sure to test all appliances, the HVAC system. Additionally, check the yard for any changes and ensure the previous owners did not leave anything behind. If you come across any major changes, be sure to let your real estate agent know as soon as possible.
Conclusion
It’s normal to feel anxious or nervous when the reality of purchasing a home sinks in. Think of your purchase as an investment in real estate…and a huge milestone you’ve in finding your forever home. The process can be complicated, but, in the end, it is totally worth it!
The above is not legal advice. Should you need advice on a real estate closing or would like to use Chris Baldwin Law for your next closing, schedule your FREE Consultation by clicking HERE or contact us by calling 334-863-4555.
Here at Chris Baldwin Law, we utilize a program called Qualia for all of our real estate closings. With Qualia, we also use a service call Qualia Connect. You might be asking yourself, “What is Qualia Connect?” Qualia Connect is a cloud-based, all-in-one secure portal that allows efficient communication for individuals during the closing process. Check out our article “Closing with Qualia Connect” to learn more.
Chris Baldwin Law
Looking to buy or sell a property in the area? You need a skilled and experienced real estate closing attorney on your side. At Chris Baldwin Law, we specialize in providing comprehensive legal services for real estate transactions.
Chris Baldwin Law has a deep understanding of the legal complexities involved in real estate closings. We work closely with buyers, sellers, and lenders to ensure that every transaction is handled efficiently and effectively. Whether you’re a first-time homebuyer or a seasoned investor, we have the expertise and knowledge to guide you through the closing process.
At Chris Baldwin Law, we understand that real estate transactions can be stressful and overwhelming. That’s why we make it our mission to provide personalized and attentive service to each of our clients. We take the time to explain every aspect of the closing process and answer any questions you may have along the way. Our goal is to make sure that your closing is as smooth and stress-free as possible.
Our services include, but are not limited to:
- Reviewing and drafting purchase agreements
- Conducting title searches and addressing title issues
- Facilitating communication between all parties involved in the transaction
- Reviewing closing documents
- Representing clients at closing
At Chris Baldwin Law, we are committed to providing our clients with the highest level of legal service. Contact us today to see how we can help you with your next real estate transaction. Contact us by calling 334-863-4555.
No representation is made that the quality of legal services is greater than those performed by other attorneys.