Closing Checklist: Buyer's Last Steps Prior to Closing on a New Home
Home buyers can improve their chances of a successful real estate closing by following these steps.
A successful real estate closing depends largely on following the rights steps prior to closing on your new home. During this time, a home buyer and their real estate should stay in regular communication and follow-up with all parties to ensure everything is on track for home buying success. Below are some of the last steps a buyer needs to take prior to closing on a new home in North Carolina and other states.
Closing Checklist Items Leading Up to Closing
Leading up to closing, there is a lot of activity. From property inspections and home appraisals to property survey and termite inspections, the last days of any real estate transaction can be hectic. At the same time, a real estate attorney or title company will be performing a title search and preparing documents for the closing. Throughout this process, buyers and their agents will need to continue to communicate with the lender to make sure the home loan stays on track and will be available by the closing date. Prompt communication and attention to detail is vital during this time.
Purchasing Homeowner’s Insurance to Satisfy Lender
When you buy a home in North Carolina using financing, your mortgage lender will require you to purchase homeowner’s insurance before the closing. Why is this a requirement? Lenders require homeowners insurance because the your lender’s mortgage is collateral against the home you are buying. Make sure to have the insurance company send you a proof of insurance prior to closing.
Prior to Closing Buyer Must Transfer Utilities
Before a buyer sits down at the closing table to finalize the purchase of a new home, you should arrange to have the utilities transferred into your name as of the closing date. Buyers will need to contact the local utility companies (power, gas, water, etc.) individually to make these arrangements. In some states, transferring utilities is legally required for the closing to take place.
Perform a Final Walk-Through Inspection with Real Estate Agent
Before your real estate closing, schedule an appointment to walk through the property one last time. If possible, schedule this final walk-through inspection on the day of your closing. What is the point of meeting your real estate agent and walking through the home you are buying prior to your closing?
The buyer’s goal during this final property walk-through is to make sure all agreed-to repairs and upgrades were not only completed, but completed to their satisfaction. Buyers should also check to see that no fixtures were removed and items sellers agreed to leave to the buyer were left at the property according to the contract. Also, make sure that the sellers did not leave behind personal items not listed in the contract and that the home is clean. Use our final walk-through inspection checklist as a helpful guide.
Certified Funds and a Photo ID
Buyers must bring certified funds in the form of a certified check or cashier’s check to the closing. These funds pay the down payment and closing costs, which typically constitutes 3% to 5% of the purchase price after subtracting the earnest money deposit. Before closing, buyers will be informed whether they need one or two checks to make these payments. Finally, do not forget to bring a photo ID with you as well.
The days and steps leading up to the real estate closing often feel like a nonstop whirlwind of activity. To help make this time less stressful, work with a North Carolina real estate agent who pays strict attention to detail, keeps an open line of communication and responds promptly to questions and requests. To work with a team dedicated to delivering a better home buying experience, contact Red Door Company today.