Once we receive those long awaited magic words from the lender; CLEAR TO CLOSE, the closing can be scheduled.
What is the closing? It is a meeting in which you will sit down and sign both your mortgage (if applicable) and real estate documents. By the time you leave the table, you are the official owner(s) of your new home.
When and where is the closing? Closings are most often scheduled by the listing agent at their office or title company. They occur a few days after the lender gives the clear to close notice and discloses final figures to the buyer(s). Best efforts are made to most conveniently fit this meeting into everyone’s availability, but that is often difficult and sometimes buyers and/or sellers will need to be flexible, compromise, make adjustments and most likely take time off work in order to attend the closing. Closings occur during typical business hours of Monday through Friday 9-5. (4:00 is typically the latest time scheduled in order to be completed by 5). Every person on the purchase agreement and mortgage needs to make arrangements to attend in order to sign the paperwork.
Who attends the closing? Sometimes there is quite a room full of people and I like to prepare my buyers of what to expect before they show up that day and wonder who some of the unfamiliar faces are. At closing you will often see: The seller(s), the buyer(s), the listing agent, the buyer’s agent, the lender, a closer from the owner’s title company, a closer from the buyer’s title company.
What does a buyer need to bring to closing? Sometimes buyer’s kind of wonder if there is something special they need to bring to the closing. But in most cases, you’re just going to need show up with an ID and a cashier’s check (or money wired ahead of time). The lender will advise on how much money you will need to bring (or send) and in what form it needs to be provided.
Important homework!
Once the closing is scheduled, there are a few things that you will need to do in preparation for closing day and taking ownership of your new home.
Transfer utilities – as soon as possible you will need to call the applicable utility companies and request service be transferred into your name effective on the date of closing. If you do not do so, you may have service interrupted once the seller has their own service canceled after closing. That’s not only inconvenient, it will also end up costing you extra, unnecessary, money to get it turned back on.
Get check or wire in plenty of time – Don’t wait until you are on your way to closing to swing into the bank, take care of it at least the day before if possible.
Schedule a final walk through – This is best done the day before closing. This is your opportunity to ensure that the home is still in the same condition that it was at the time you made the offer to purchase. If the seller agreed to make repairs prior to closing, this is when you verify that they have been done. You ensure that the house is still standing, there isn’t a tree through the roof, the basement isn’t flooded or any other big surprises that would be best known and addressed before you take ownership.
