Ready, set, Close!

Closing day can be an exciting, yet anxious day for both buyers and sellers.  Besides all the packing and moving, there are many things that need to be handled in order for the process to go smoothly at the closing table.  

Let's start by taking a look at what a buyer needs to do in order to be prepared to close the transaction properly. 

How you as a buyer will pay for the home at closing plays a big role in what is needed for completing this transaction.  For example, if you pay for the home by securing a mortgage lien on the property you will have some lender paperwork to sign at closing as well as provide financial paperwork ahead of time to a loan officer representing the lender.  This pre-paperwork includes, but is not limited to, pay stubs, bank statements, previous years taxes and even letters explaining certain situations of your financial history.  The lender more than likely requires that little to none of your financial history can change in between the time that they approve the financing and when you sign the closing documents.  This would mean waiting to order new furniture, buying a new car, etc. until after the closing has occurred.  If you are paying for the home with cash, then you will need to bring the cash in the form of certified funds to the title closer.  

Say you are moving from an apartment to the house, then you will need to finalize all utilities that are being serviced to that apartment for the day that you plan to move out.  You will have to give your landlord notice of vacating per the terms of your lease.  A buyer will also need to start utility service in your name as of the date of closing.  If you've sold or are selling your previous home you will also need to finalize the utilities servicing that property according to the city and utility company requirements (i.e. final water, gas or electric meter readings).

For the closing, a buyer will need to bring a valid form of government identification (driver's license, passport, etc.), a cashier's check for the amount of money that will be out of your pocket as part of the loan requirements, 10 years of address history, an insurance binder for the required hazard insurance determined by your lender, proof of sale on your previous residence (if selling that home and moving to the new home) and of course any other paperwork your lender would require to see at closing.  

Walking through a list will help you remember to do all that is necessary to close out one residence and open up another.  Most buyers tend to give themselves some time in between moving from one living situation to the new home so that they can paint, clean or replace carpet or other flooring, do repairs or clean the home.  The amount of time you should allow yourself to complete the things you want to do before moving in will depend on the amount of work you want to put  into the property ahead of time.  In my experience, buyers tend to be less stressed if they don't plan closing one day and moving that day or even the next day.  You will feel less anxious and stressed when you all for transition time.  If you have any questions about what is needed to close from a buyer's perspective, do not hesitate to contact me.