You are almost a homeowner! But before you can celebrate, you’ve got to gear up for a successful settlement day. And that means no surprises, no delays, and no leaving without the keys to your new home.

There is a lot to do on the days leading up to your closing and settlement. You’ll be better prepared and on top of everything if you know what to expect. Some of these tasks were covered in last week’s article, Almost There…Pre-Closing Details for Buyers.

Today’s article will touch on some of those tasks again but will also cover more of what happens during the settlement. That way you stay calm and know what to expect!

Here’s a handy breakdown of what you need to do at each stage of the process:

Pre-Closing Tasks to Complete:

Get homeowner’s insurance. Make sure that it starts the day of the closing; no later, even if you are moving in later.

Don’t hurt your credit (loan!). Do not do anything that could change your financial circumstances, such as opening a new credit card account, getting a new auto loan, charging too much on your current credit cards.  Even buying furniture before your settlement is a bad idea.  This could delay or even cancel your mortgage. So hold off on any shopping sprees for your new home!

Connect your utilities. Make sure you make it effective for the day of settlement, even if you are moving in after settlement.  The seller will turn them off in their name the day of settlement since they will no longer be the owner of the home.  To avoid any reconnection fees, make sure the utilities start in your name the day of your settlement.

Give yourself enough time to move funds around.  Please be aware that banks typically put at least a 7 day hold on large transfers.  Be sure to talk with me, your lender and your attorney on the best way to get funds needed to for your cash to close.

Settlement Day To-Dos and Logistics:

Your Final Walk-Through

You will be allowed to do a final walk-through of your home prior to closing. It should take about 30 minutes. We will go through the home this one more time to see if everything is good as your attorney will ask you this and you will sign a document saying you accept the house in the condition it is in.

You are not doing another inspection, but just making sure that any repairs that were agreed upon have been done and ensuring the home is still in the same condition as when you wrote the contract. 

What to Bring to Closing

• Bring your driver’s license or some form of photo ID.
• The settlement attorney and your lender will calculate the amount of money you need to bring to the closing.  You’ll need to bring a certified check for this amount.  Also make sure you also bring your checkbook just in case any minor last minute corrections need to be made. 
• Your attorney with have a copy of the Closing Disclosure form (it replaced the HUD-1 Settlement Statement). This form lists all final terms of the loan you’ve selected, final closing costs, and the details of who pays and who receives money at closing. Your lender should send you a Closing Disclosure at least three business days before closing.

What to Expect at the Closing

We should plan to attend the closing at the specified time at the settlement company’s offices. The sellers also will be there with their agent.  Most closings take about an hour, but some closings can take more than an hour, so plan accordingly if you have to take time off from work.

This is the day where the sellers will legally transfer the property to you. Your attorney will oversee the terms in the contract to ensure they are being carried out and the transfer of ownership occurs.   

Stay calm! You will be signing a lot of documents that day so make sure you understand and know what you are signing. Ask questions and confirm amounts if necessary.

Congratulations … You bought your home!

You’re all set to move into your new home now that you’ve made it through your settlement.  It’s time to celebrate and start unpacking.

Now that you’re a homeowner, you’ve got to take care of your new home. Next week’s bonus article, Maintaining and Loving Your New Home, is perfect for you. I hope you have enjoyed our Buying a Home 101 series and that it will help you become an informative and confident buyer.

If you’ve enjoyed this series, I’d love the opportunity to help you become a homeowner. 

Our first step together would be a 30 minutes meeting where we’d discuss the steps in the home buying process, talk about your criteria and see if you qualify for any first time home buyer loans that could save you money. 

Even if you don’t think you are ready to buy for years, I’d love to meet you and help you put together a plan we can implement whenever you are ready.  My goal is to help you when you are ready, not pressure you to do something that isn’t right. 

So, email me and let’s set up a time to talk more about you specific situation and put together a list of things you can do between now and when you are ready to become a homeowner.  That way you’ll have all your ducks in a row when the time comes.

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