by Dian Hymer
Closing practices vary from one area to the next. But, regardless of where you buy, closing has the same meaning. It occurs when all the terms and conditions of the purchase agreement have been met and the sellers give the buyers marketable title to the property. Closing is the completion of the sale.
After you have satisfied your contract contingencies, but before you close the sale, several tasks need to be completed. Lenders have requirements that must be met by closing. Typically, lenders require assurances that title to the property is clear. You should arrange for title insurance to protect yourself as well.
You'll also need to decide how you want to hold title to the property. The way you hold title to property has estate planning and tax ramifications, so you may want to consult with an accountant or an attorney who specializes in estate planning.
Lenders require hazard insurance, usually with proof that a one-year premium has been paid in advance. If you are buying a condo or cooperative, the lender will require proof of the association insurance coverage. You should arrange for insurance to cover your possessions and personal liability. This won't be covered by the association policy.
Contact movers at least a month before you want to move to get estimates. You'll probably want to talk with several before selecting one. Ask friends and your real estate agent for recommendations. Donate, throw out or sell possessions you no longer need before you get estimates.
Check to make sure that any repair work the sellers agreed to do before closing is complete, or will be done before closing. A notice of completion stating that termite work has been done may be required before the loan will be granted.
The week before closing, call utility companies and have the utilities transferred into your name at the new address. Make arrangements with the post office to have your mail forwarded and complete change of address notifications.
Arrange to do a final walk-through inspection of the property within the week before closing. Ideally, try to meet directly with the sellers to learn the idiosyncrasies of your new home. Get copies of operating and instruction manuals for appliances, and security and irrigation systems.
First Time Tip: Buyers are often surprised at the volume of papers they have to sign at closing. If possible, get copies of all your closing documents from the person handling the closing before you sign the originals. Review them to make sure that you understand everything.
If there is any discrepancy between the loan you thought you were getting and what the loan papers indicate, call your loan agent or mortgage broker for an explanation. If there is anything in your closing package that you don't understand, talk to the escrow officer or closer, your loan agent, real estate agent or attorney.
Your closing money will have to be in the form of a certified or cashier's check. Alternatively, the funds can often be wired from your account to the closer's bank account. Find out exactly how much money you'll need to close, and get detailed wiring instructions from the closer if you plan to wire funds.
Your signature will have to be notarized when you sign closing documents, so bring your driver's license, or other acceptable identification, with you to the signing.
The Closing: Make sure that keys and garage door openers will be made available to you at the date and time you are to take possession so that you can move in without delay.
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