After all the due diligence is completed, and your financing is ready, it's time to head to closing.
You will need to obtain a homeowners' policy of insurance effective as of the date you close the purchase of your home. If you have a lender, the lender will need to be added to your policy as a lienholder and additional insured. Your lender might also have certain requirements as to the types and amount of coverage they require. We recommend you start the homeowners insurance process once the home inspections have been completed.
One week before the closing, you should call the utility companies and begin the process of having the utilities for the property transferred into your name as of the closing date. Which utility companies you need to contact will depend on the location of your property. We can help provide you with the names and contact information for the utility providers you need to contact.
We will want to schedule a final walk-through just before the closing to make sure everything at the home is as expected. We will make sure any required repairs have been completed, all systems are functioning properly, that the items to be conveyed per the contract are in place, and that no damage has occurred to the property since you last saw it. We strive to have no outstanding issues when we head to closing. If there are issues with the walk-through, we will get those resolved before closing.
We like to have an approved HUD-1 Settlement Statement (also known as the closing statement) to review with you at least 24 hours prior to closing. If financing is involved, your costs should be in line with the good faith estimate you received during the loan application process. The settlement statement will also identify what taxes are being prorated at the closing and how much cash you have to bring to closing.
The closing is when the seller and the buyer show up at the closing office, typically the title company's office, sign the final paperwork, and exchange funds and the keys to the property. Generally the seller and buyer are scheduled separately to handle their parts of the closing and do not interact during the actual closing. You will need to bring a photo ID to the closing, along with a cashier's check or other form of good funds acceptable to the title company if necessary.
If you know you will be unable to attend the closing in person, due to travel plans or other circumstances, we need to let the title company know well in advance. We can either arrange to have the title company send you the paperwork to sign and get back to them prior to the closing date or you can arrange to close through an agent authorized under a written power of attorney.