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Prepare for the Closing

The offer and contract contingencies have been accepted with your deposit. Upon signing the final purchase agreement an escrow account needs to be opened with the deposit monies. If you have a real estate agent involved in the sale, they will generally setup the escrow account. If you are buying directly from a seller, generally their attorney holds the deposit money in escrow. The monies are held until closing and will be part of the final settlement costs.

While the seller and buyer are responsible for separate closing fees, there may be a time when a seller may be willing to share some of the buyers expenses. For example, in a buyer's market a seller may agree to this arrangement to entice a buyer into purchasing their home.

The closing costs to the buyer consists of attorney fees, title insurance, any applicable loan fees, homeowner's insurance and pro-rations of taxes, water & sewer, utilities and possible homeowner association fees.

To assure your closing will happen on time, request a copy of the final closing statement for your review. Check that all the calculations of your deposits and credits from the seller are accurate. Verify the lender, title and escrow fees are what you agreed to. Check the math for accuracy.

Your attorney will have ordered and reviewed the preliminary title report and have obtained documents to clear any outstanding liens against the property. You can also request to review this report.

A final home inspection within a day or two before closing should definitely be done. Verify that any necessary repairs were completed and all items covered in the contract meet your satisfaction.

Finally, at closing check that interest rate, term of mortgage and fees are correct. Your attorney will oversee the signing of paperwork, exchanges of loan funds and sale proceeds to the seller. Loan documents, deed and other recorded documents will be mailed to you sometime after closing.

Keep all documents relating to your home purchase. Depending on your tax bracket some items may be deductible, for example moving expenses. Just as a reminder, you will need to notify the utility company, phone, cable, trash removal, insurance, post office of your new address. Obtain change of address cards to forward to any delivery services, such as newspapers, periodicals, charge cards or any establishment you regularly receive mail from.

Congratulations, you are now a homeowner.

Copyright© 2008 FSBO Publishing Group, Inc., All rights reserved. This material may not be republished without written permission.