Your Midland REALTOR® will walk you through the entire home-buying process from start to finish, but here’s a quick look at some of the things you’ll have to do before you sign the dotted line.
5 Things You MUST Do Before Closing on Your Next Home
Check out these five big milestones you need to pass before you can show up at the closing table to sign your final paperwork and collect the keys to your new home:
- Make sure the title is clear
- Tackle all the contingencies in your contract
- Review your closing disclosure
- Get your final mortgage approval
- Conduct your final walk-through
Here’s a closer look at each.
Pre-Closing Step #1: Make sure the title is clear
Your lender will most likely require you to purchase title insurance and have the title checked for anything that could affect your ownership of the home. There are two types of title insurance – one that protects only the lender and one that protects only the new homebuyer. Your lender will need the kind that protects it, but you may also want to purchase a homeowners policy, as well. That way, if someone comes along later to challenge your ownership of the home, you’ll have your insurance to fall back on.
Pre-Closing Step #2: Tackle all the contingencies in your contract
Most real estate contracts include at least a couple of contingencies. Contingencies are really just conditions that have to be met before the deal can go through. They often include things like home inspections, financing and repairs. You’ll have to make sure that both you and the seller have done all the things you agreed to do before you sign the final paperwork that transfers ownership of the home to you.
Pre-Closing Step #3: Review your closing disclosure
Your closing disclosure, which you’ll get from your lender, clearly outlines the financial terms of your deal. It’ll cover things like your exact mortgage payments, interest rates and loan terms, as well as your closing costs. You’ll want to compare this document to the loan estimate that you got from your lender at the beginning of the process – and if anything looks different, ask your lender to explain.
Pre-Closing Step #4: Get your final mortgage approval
You’ll have to be officially approved for a mortgage before closing day. That means your lender will have reviewed all your financial documentation and that it has agreed to lend you the right amount of money to buy the home. A lot of the paperwork you’ll sign on closing day has to do with financing, so you can’t close or take possession of your new home without final mortgage approval.
Pre-Closing Step #5: Conduct your final walk-through
You’ll most likely have an opportunity to conduct a final walk-through of the home before you sign the papers on closing day. During that time, you need to check for yourself that the seller made repairs or upgrades that you asked for; you’ll also want to ensure all the fixtures in your contract are still there (like the oven or anything that you may have negotiated for in the contract) and that the seller has completely vacated the premises.
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