The time has come. We are in the home stretch of the homebuying process and we enter into closing week! This final week of the homebuying process is always exciting but it can at times be stressful too. Sometimes it all comes down to your preparedness. We have a few last hoops to jump through and need everything to fall into place to cross that finish line. We hope that by walking through what you can expect during closing week, this process will be as smooth as possible for you.
Getting the Numbers Right
Your highest priority during closing week is to make sure all the numbers on the settlement statement are right so that you can officially fund your home when the time comes. The settlement statement will be an update to the loan estimate you originally received from your lender when you first applied for the loan. This statement will include all the final numbers that you will be responsible for on the day of closing. You and your agent will review the document in detail to ensure that everything looks correct and so that you know what you are responsible for at closing.
Once you know the official amount of cash you will need at closing, you need to then decide what method you are going to use in order to bring those funds to closing: wire transfer or cashier’s check. Check with the title company before making any final decision to ensure that they will accept payment in the way you are planning.
Plan Ahead
Waiting until the last minute to schedule a wire transfer or request a cashier’s check could end in a delay in being able to close. Some banks may move slowly on wire transfers and not be able to perform the transform until the following day. Some banks no longer have branches with storefronts and getting a cashier’s check may take a little bit of time. Also, consider how available your funds are. You may have the money but it doesn’t mean you have direct access to it. Do you need to sell investments or move money so that the cash is available? Thinking through these prior to closing day is vital in making sure your closing goes smoothly and you’re able to close without delay.
We always recommend to our homebuyers as a best practice to transfer funds to the title company the day before closing if they can. Money sent to a title company is secure. The title company is a third party that will only move and disperses funds the way the contract instructs them to. Transferring early ensures that you will be ready to fund the home when the final paperwork is signed at your closing appointment.
A Warning For Wire Fraud
Wire fraud is rampant in real estate. It can be easy for people to hack into emails and change instructions on where to wire money when buying a home. Therefore, you should always confirm wire instructions over the phone using a phone number that you are positive is correct per the title company. If funds are transferred into the wrong account, there is unfortunately no undoing this.
The Final Walk Through
Within a day or two before closing, you and your Realtor will do a quick and final walk-through of the home. This is a last chance to lay your eyes on the home and make sure that it is in the same condition it was in when you went under contract. During the walkthrough we are making sure there is no fire damage, no flooding, or storm damage, the hardwood floors didn’t get scratched up when moving out furniture, etc. If needed we will double-check repairs that the seller was liable for and also ensure that anything purchased from the seller (curtains, furniture, etc.) was left behind.
Closing Day
The day has finally arrived! Time to buy a home. We always attend closing day with our homebuyers and our most important job that day is to celebrate with you. Closing happens either at the title company or using a mobile notary. A mobile notary is simply a notary that can meet you at your home or out of state if you are not able to make it to the title company for closing day. Closing usually takes about an hour and occurs during normal business hours.
The majority of the documents you will be signing are for the lender. The seller will sign at another time before or after your appointment. Once all the documents are signed by both the buyers and the sellers, the mortgage company will review all of the documents and make sure that there are signatures everywhere they need them to be. Once this is confirmed, they will then issue a funding authorization which allows the title company to release the funds and distribute them as needed. When this occurs, the home is funded and we get to hand over the keys to your new home!
You’re officially a homeowner! Now time for a pizza party on the floor of your new home on night one to celebrate!
Are you ready to dive into the homebuying process? Becoming a homeowner is an incredible feeling and we would love to be the ones to hand you the keys to your new home. If you’re ready to get started, give us a call.
Until Next Time,
Brianna and Keelie