Home Buyers--What is the Closing and How Can I Prepare For It?

So you¡¯ve survived most of the escrowreview.
process with very little wear and tear,you are now inMake Sure You Inspect the Property During the Final
the final stages of escrow and the purchase of yourWalk-through
house issoon to close. What exactly occurs duringJust before closing you will be required to re-inspect
closing and what can you do toprepare? There arethe property which is oftenreferred to as the final
several things you should do to be certain that yourwalk-through. In all fairness to the seller,
realestate transaction will close on time, and thatdon¡¯t use thisstep as the time to bring up
everything will go smoothly.unnecessary issues that had never been addressedin
Double-Check All Monies and Financial Calculationsyour purchase contract. By the same token, you
A day or two before closing, you should review yourshould not view this as amere formality and fail to
final closing statement ormake sure that the house is in the condition that
HUD-1 Statement, whichever is used in your area ofyouhave been promised. Ask yourself the following
the country. You shouldtake the time to examine allquestions: Is everything theway you expect it to be?
calculations and be certain that you are givenHave all the necessary repairs or other
creditfor all your deposits and any other credits duecorrectivework that was promised or had been
to you from the seller or forother items agreed uponstipulated in your purchase contract beencompleted?
between yourself (the buyer) and seller onExpect to spend some time during the final
yourpurchase contract. Go over all the lender, title,walk-through and allowyourself enough time to really
escrow and additional fees, tobe sure that they arepay attention and diligently check on things.
what you had been told and that you had agreed toUsually the whole process will take an hour to an
them.hour and a half. This step isimportant so that you
Check the math calculations on the closing statement.don't arrive at your new house and find
This is the time to catchany errors, as they do occurunexpectedsurprises that will be difficult to take care
and get them corrected as soon as possible.of after the fact.
Review All Paperwork and Closing DocumentsDouble Check all Closing Documents Before You Sign
Carefully review the preliminary report or theThem
guarantee of title insurance, toverify the exact legalThe most important thing to remember is that
description of the property and any liens,before closing you want to becertain that all the
encumbrances orother items which may have beenconditions of the purchase contract have been met.
discovered on the property. Make sure thatall itemsYou wantto make sure that all instructions have been
are removed that you did not agree to in writing.completed. Before signing yourname to any closing
Verify that the title orescrow agent has your correctdocuments, take the time to check and double check
vesting, or in other words, has correctlyidentified thethateverything is correct-- interest rate, fees charged
way you want to take title to the property, and it isand condition of the property.
reflected inthese documents. It is can be extremelyMost likely the whole process will run smoothly; but, if
time consuming to correct thesedocuments after thenot, this is the time tocatch any problems and
fact. Keep in mind that these are legally bindingproactively resolve them.
documentsand they are worthy of your careful