Closing on a home is a big deal for both buyers and sellers. There is a lot to take care of, and it can feel a little bit overwhelming at times. Not to worry! In this article, we will go over everything you need to know about closing on a home, including what you need to do on closing day to ensure that everything goes off without a hitch.
We’ll look at the closing day from both the buyers’ and the sellers’ perspectives so that you’ll have everything for a smooth transition.
What to Expect on Closing Day?
Hopefully, you have taken care of everything you needed to before closing day, such as reviewing your contract, doing a walkthrough of the home, meeting with your lawyer, and arranging home insurance if you’re a buyer. But assuming that all of that has been taken care of, what can you actually expect on closing day? And what things will you need to facilitate an easy closing?
Let’s look at the closing day checklist from both the buyers’ and sellers’ perspectives so that you won’t have any surprises when the big day arrives.
Closing Checklist for Buyers and Sellers
Tips for Buyers
As a buyer, closing day is a huge milestone. It’s the day when your home purchase is official and if it’s your first home then it could very well be one of the biggest days of your life. Be sure to have the following items in order so that everything goes smoothly and according to plan.
Photo ID
You will likely be required to present a photo ID, so prepare for this by having your driver’s license, passport, or other photo ID cards on hand. Not having your identification can delay things and cause some unnecessary headaches. You might think this is an obvious point, but you would be surprised by how many home closings are delayed because of missing identification.
Cashier’s Check
You will need the cashier’s check to pay for the house. The chances are that this will be the biggest check you’ve ever had drawn up in your life, so make sure that the amount is correct, that everything is made out legibly and then keep it safe and secure. The last thing you want is to lose the check for your new home.
The Closing Disclosure
Make sure that you read and sign the closing disclosure, as this will contain vital information about the home that you’ve purchased along with any relevant information about the state of the home or property. Assuming everything looks good, you can set this aside and have it ready for closing day.
Proof of Insurance
In most cases, you will need to provide proof of insurance before taking possession of the home. Shop around for the best rate ahead of time so that you’ll have all of your paperwork on hand when it comes time to close on the home.
Not having insurance can delay the closing and in some cases even cause the deal to fall through, so do your homework, pick an insurance policy that you’re comfortable with, and make sure that you have the policy with you on closing day.
Additional read: 10 Commandments For Home Buyers
Tips for Sellers
Gather Closing Documents
You’ll need to make sure that you have all of the required closing documents on hand for the buyer and the agents. If you are missing even a single document, then you could end up delaying the closing or possibly even losing the deal. Double-check that you have everything provided to you by your agent ahead of time so that you don’t run into any unnecessary roadblocks.
Notify Everyone That You Are Moving
Be sure that you call everyone to let them know that you are moving. The last thing you want is for your guests to show up at your old house thinking that you still live there; this can reflect poorly on you as it inconveniences your visitors and annoys the new homeowners.
Another reason to let people know that you’ll be moving is so that any mail you have coming to your residence can be forwarded to your new address. The last thing you want is for important documents to be lost or otherwise delayed because you forgot to inform someone about the move.
Make a list of everything important that comes in the mail each month and reach out to those companies so that they can update your mailing address and contact information accordingly.
Cancel Home Insurance Policy
Don’t forget to cancel your old home insurance policy. Overlooking these details could leave you paying for an extra month or two. Also, make sure that you have arranged for a new policy to cover your new home, as this will be necessary to complete that purchase as well.
In most cases, your insurance provider will be able to transfer your existing policy to your new address. Just let them know if there is any difference in the value of your home, so they can provide you with an up-to-date quote that reflects the new home value.
Cancel All Utilities
Remember to cancel your utilities – this means tv, home phone, internet, gas & electric, and any other utilities that you have set up; not doing this can cost you money and can also potentially cause delays and problems for the new homeowners when they go to set up their own utility accounts for that property.
In general, most utility companies can transfer your account to your new home but will often require up to thirty days advanced notice so be sure to let them know that you’ll be moving and tell them your closing date, if possible, this way you’ll benefit from having a seamless transition and won’t need to worry about any extra unexpected utility bills.
Prepare the House for New Owners
Last but not least, it’s nice to do another walkthrough of the home just to make sure that everything looks good and is as it should be for the new homeowners. Remove any garbage that may be in the home, give the floors one last sweep, and make sure that you disconnect any alarm systems that may be installed in the home, or the new owners may have some problems when they show up to start moving their furniture in. Also, remember to double-check that you have turned off any lights or appliances in the home.
Contact A and N Mortgage for More Tips
A closing day can be a hectic experience at the best of times. Surprises can still pop up, causing unnecessary stress on an already stressful day. For that reason, you should contact an expert, such as A and N Mortgage, for more tips.
An A and N expert will be able to help you prepare for the surprises that can pop up on a case-by-case basis on closing day, which can make all the difference between stormy skies and smooth sailing when the big day rolls around.
Finally, don’t forget to congratulate yourself. Whether buying or selling your home, closing day is a huge achievement that deserves to be celebrated. So give yourself a pat on the back for doing everything on this list and closing like a pro.
A and N Mortgage Services Inc, a mortgage banker in Chicago, IL provides you with high-quality home loan programs, including FHA home loans, tailored to fit your unique situation with some of the most competitive rates in the nation. Whether you are a first-time homebuyer, relocating to a new job, or buying an investment property, our expert team will help you use your new mortgage as a smart financial tool.
Additional read: Lowering Closing Costs: What Will Work Best for You?
