How Do I Prepare For Closing
How Do I Prepare For Closing?
Double-Check the Money
Prior to the actual closing day, there are
several things you should do to be certain that your real estate transaction
will close on time, and that everything will go smoothly. A day or two before
closing, you should review your final closing statement or HUD-1 Statement,
whichever is used in your area of the country. You should go over all the
calculations and be certain that you are given credit for all your deposits and
any other credits due to you from the seller or for other items agreed upon
between buyer and seller. Go over all the lender and title and escrow fees, to
be sure they are what you had been told and that you agree to them. Check the
math calculations on the closing statement. Errors do occur.
Review the Documents
Carefully review the preliminary report or the
guarantee of title insurance, to verify the exact legal description of the
property and any liens, encumbrances or other items which may have been
discovered on the property. Be sure that all items are removed that you did not
agree to. Verify that the title or escrow agent has your correct vesting, or the
way you want to take title to the property. This is important because to correct
a vesting on a deed later on is time consuming and can be avoided if care is
taken when escrow is closed.
Re-Inspect the Property
Besides the paperwork which you must review and
verify, you should re-inspect the property once again just prior to closing. Is
everything the way you expect it to be? Have all the necessary repairs or other
corrective work been done that were promised to you? This is important so that
you don't arrive at your new house and find unexpected surprises.
Check and Double-Check
The most important thing to remember is that
before closing you want to be certain that all the conditions of the purchase
contract have been met. You want to be sure that all directions given to the
closing agent have been performed. Before signing your name to any closing
documents, check and double check that everything is correct, interest rate,
fees charged and condition of the property.