Buyers You Are Clear To Close
Ready to Close
We are in the home stretch! Closing is around the corner. Here's what to expect in the days before we close:
Lender documents & more documents & more documents
You've probably already gone cross-eyed from all the documents you've had to send to your lender. But, keep in close contact with your lender during the final weeks. There may be last minute docs to sign, affidavits, or questions to answer. Also, you will get a final document, called the final pre-closing document (CD), which you must acknowledge 3 business days prior to closing. Failure to acknowledge could result in a closing delay. So, pay attention to your lender.
Don't do any of these before you close:
- Don't open any credit cards. Even if you go to a furniture or appliance store and they offer you a discount to apply for a card. Even if you pay off the balance while in the store. The credit request may put you in jeopardy with your loan. Just don't do it.
- Don't (please, I'm begging you!) buy a new car before closing.
- While I'm at it, please don't quit your job before closing.
- Don't make any large deposits without checking with your lender. Some buyers will close out one account and put the funds into their savings account. Just ask before you do anything to change your financial situation.
- Don't co-sign on a new loan.
- Call each utility company, tell them your closing day, and set up service in your name. If you wait until you close you run the risk that you won't have power or gas on that day. If you need a list of the utilities for your new home, let me know.
- Some towns require you to go to the billing department in person and leave a deposit.
- Set up mail forwarding for yourself to your new address.
- You will have a chance to walk through the home prior to closing.
- This should be done as close to the closing time as possible. We hope that the seller will be out of the house and the house will be empty, but sometimes the timing just doesn't work out. We will work with the seller and their agent to make this transition as smooth as possible.
- At the walk-through we will be checking to see that the sellers have left what they were supposed to leave, and that there are not additional items remaining.
- We will also make sure no new issues have come up that we can see (like a leak or damage caused by the movers).
- The seller must repair all items they agreed to repair.
- The seller should send their receipts/invoices/work orders, etc. for any work completed to their attorney prior to closing; you should see that evidence either before or at closing.
- If the radon levels were high, and the seller remediated the radon, we will need to see the scope of work completed and in most cases evidence of a clean 2nd radon test. Also, during the walk-through we will point out the new system.
- During the walk-through we can do a quick visual check to verify the completed work.
Condition of the Home
The contract says the seller must leave the home in "broom-clean condition." This means after the seller has emptied a room they are obligated to vacuum or sweep every room.
- The sellers are not obligated, per the contract, to scrub bath tubs/refrigerators/windows etc.
- Most seller will do their best to leave the home in decent condition. (It's all about good karma, after all.)
- You should expect to do a deep clean once you own the home. Just plan on it, and if you don't need to, consider yourself lucky.
- Moving is stressful. The sellers may have run out of time to get everything completed they planned to do and they may not have wiped out some cabinets, or there may be a bit more dust than we expected. If it rises to an extreme level, we will address it with the seller before closing.
How Much Money to Bring to Close
Your lender, in conjunction with your attorney, will tell you how much money you'll bring to close and the exact way you need to bring it--whether a cashier's check or to wire the funds. It may seem like you are getting this at the last minute. I don't pretend to be an expert in this area so I'm not sure what all goes in to the formula; but, rest assured you will get that information before closing.
Warning About Wiring Funds
Never trust wiring instructions sent via email. Cyber criminals are hacking email accounts and sending emails with fake wiring instructions. These emails are convincing and sophisticated. Many of these fraudulent attempts will come via email and may appear to come from @properties, me, your attorney or even your title company. To ensure you are not party to a fraudulent attempt, and to confirm that electronic communication received is legitimate, always verbally confirm wire instructions before taking any action. All verbal confirmation should be made using a phone number you obtain separately, and never from contact information provided via email request.
WIRE INSTRUCTIONS AND CONFIRMATIONS MUST BE VERBALLY APPROVED, VIA A PHONE NUMBER OBTAINED SEPARATELY BEFORE INITIATING WIRE.
NEVER REPLY TO EMAIL CONTAINING WIRING INSTRUCTIONS AND NEVER USE CONTACT INFORMATION PROVIDED IN SAID EMAIL REQUEST.
BE WARY OF LAST-MINUTE EMAIL REQUESTS, ADVISING OF WIRING INSTRUCTIONS CHANGES. WIRE INSTRUCTIONS DO NOT CHANGE.
At the Closing
***DUE TO COVID-19, AGENTS ARE GENERALLY NO LONGER ALLOWED AT THE TITLE COMPANY FOR THE CLOSING. ALTHOUGH WE WILL NOT BE THERE IN PERSON, WE ARE JUST A PHONE CALL AWAY IF A PROBLEM ARISES.
The closing will occur, most likely, at a title company. In most cases, all buyers on the contract will have to be at the closing. Your attorney will be there to walk you through all the documents. Tips for a smooth closing:
- Drink lots of coffee
- Stretch out your wrist so you don't cramp up
- Try to get plenty of rest the night before because, honestly, these closings are long and boring!
- Be prepared for it to take, at best one hour, maybe two hours; or it could be longer. We are at the mercy of the lender, title company and seller.
You've signed the documents. Your money has been transferred. We give you the keys. You own the house now and can move in whenever you want; BUT, you can not move any people, pets, boxes, food or anything else into the home prior to this moment. Plan accordingly!
If you are working with a moving company, give them a window with enough notice so that you are not paying them to sit extra hours while we wait for the closing to finish.