17 Steps To Getting Through Closing
When you're buying a new home, closing the sale is obviously a critical component. But closing is a process that doesn't happen all at once. It typically takes between 30 - 45 days to close, but for many buyers it seems to stretch on for centuries. What should you do during this process to ensure it goes as smoothly as possible?
1. Keep a close eye on all communication channels.
To make sure everything closes on time and everyone is happy at the end of the day, it's critical for buyers to manage communication. Many things in the closing process are time-sensitive and can delay the closing if deadlines aren't met. It's important to take phone calls from your lender, your agent, the title company, and anyone else involved - and make it a priority.
2. Get the inspection
In Arkansas, you have a ten-day window during which you can order your home inspection. It's important to get the inspection done within this timeframe. You will need to hire a licensed home inspector who can do the inspection within that time frame. A Google search should give you some names, but your agent likely has several business cards of inspectors, but cannot schedule the inspection for you.
3. Consider secondary inspections
The home inspection isn't the only inspection you can get within your 10-day inspection period. Some inspections might not be as necessary in certain areas as others. Additional inspections could include:
Radon
Pest
Termite
Chimney
Roof
Foundation
Electrical
Plumbing and water
Septic
Well
HVAC
Mold
4. Request any repairs or credits
If you want to ask the seller to make repairs or give repair credits, now is the time to request them. After your inspections, your agent will help you create a list of repairs to ask for. If the seller manages any necessary repairs for you, you'll save your own money upfront — but there's no guarantee that the seller will opt for a high-quality repair. So it's not necessarily always to your advantage to get the seller to pay for it.
5. Secure homeowners' insurance
Now is the time to find a good insurance agent if you're not already working with one. You’ll need recommendations for how much you'll need in coverage, which will cover not just the structure but all the contents (in other words, your belongings), plus your liability if someone gets hurt on your property. If you have never had homeowner's insurance, you may need to call a few different insurance companies to find one that will work with you, so don't hesitate.
6. Manage your utilities
There's no time like when you're waiting for closing for tying up loose ends. Set up your:
Electricity
Gas
Water
Trash
Internet
Phone
Cable
7. Make sure your financing is in order
Work with your mortgage broker to make sure you're handing over all the documents they need, when they need it, so there are no delays in financing. As mentioned before, many of these documents are time-sensitive, so don't delay.
8. Don't change jobs
Any major changes to either your income or expenses could cause a snag in your mortgage loan. The last thing you want when waiting for the sale to close is a delay or problem with your financing.
9. Refrain from making major purchases
You've got years to come in your new place to start kitting it out, so take a deep breath instead of pulling out your wallet. (This includes putting a big purchase on a credit card!)
10. Wait to buy furniture
On the same note, buyers often can't help but think of all the furniture they'll need (but don't yet have) in their new home. Not only is your credit score a factor, but there’s also the risk of the unknown — what if something happens before you get to closing?
11. Keep track of all your bank deposits
If you're getting a big windfall in the form of a gift or an inheritance, let your mortgage broker know as soon as possible what's going on, and ask how you need to document it with the lender.
12. Pay your debts on time
Make sure that you aren't behaving in any ways that might cause a big dip in your credit score. This includes ensuring that your bills are all paid on time and in full.
13. Review the title reports
The title report documents the home’s ownership and any liens on the property. A title will also give you details about additional anomalies like any easements on your soon-to-be home, which is always good to know before you move in.
14. Track your transaction costs
Make sure your finances are in order and track your transaction costs so that you aren't caught by surprise (and unable to pay) when a bill for the appraisal or inspection arrives, or when you’re at the closing table and have to pay closing costs. The exact amount you will need to bring to closing will be on your settlement statement, and your closing agent can help you find it if it's confusing.
15. Do the final walk-through
Just before the closing - usually the day before, or the day of - you will have the opportunity to do a final walkthrough of the home to make sure everything is as you expected it and to inspect for repairs that were to be made. You will need to arrange a time to meet your agent at the home to do this final walk-through before you both sit down at the closing table. If there’s a problem at walk-through, talk to your agent about your options.
16. Triple-check over the phone before sending any money
Wire scams exist in real estate. If you get a legitimate-seeming email from someone asking you to wire money, call the person that sent it at a phone number you have used before to check that the email is valid.
17. Keep tabs on your closing responsibilities
There's a lot going on when closing on a new home, and it seems to take forever. The best way that buyers can get through the process is to make sure they're staying on top of any responsibilities they have to move the transaction forward.
