Almost There… Pre-Closing Details for Buyers

Love Buying A Home Series: Everything You Didn’t Know You Needed To Know About Buying Your First Home

This step-by-step series will take you through the entire home-buying process — from finding the buyer’s agent to help you through settlement day, and even to maintaining your home after you’re all moved in. This series is jam-packed with information that’s easy to follow and understand. Make sure you stay tuned throughout the entire series!

You don’t want any surprises between going under contract and settlement day.  As a buyer, ensuring a smooth transition to becoming a homeowner should be set in motion well before you sit down with the sellers on settlement day.

Here’s a handy breakdown with your pre-closing to-do’s. That way you’re all prepared for when your settlement day arrives: 

About ten days from settlement, I’ll be sending you a similar list of items and giving you a call to go through everything you need to do together so you don’t miss a thing or feel overwhelmed about what needs to be done.  

Check Off Pre-Closing Tasks:

You’re moving into a new home so you want to make sure it’s all ready for you and your family. Now is the time to get certain appointments booked and accounts set up.

• Connect your utilities. You don’t want to move in without any power turned on! Get in touch with the electric company (such as Con Edison) to set up your new electric account. You can arrange a transfer prior to the sellers closing their account, and you will avoid a re-connect fee.  Be sure to start your account on settlement day – even if you are moving in later. 
  
  Depending on whether you have gas or if water is included in your condo fees (if you’re buying in a condo or co-op building), you may need to contact those services too.  Again, this is something I’ll determine for you and send you based on the home you purchase, so you don’t have to figure it out on your own.
  
  You’ll want to set up all of your accounts to start on the day of your settlement, no later, even if you aren’t moving in that day.  The seller will be turning off all the utilities in their name as of the day of settlement, so to avoid any connectivity issues or fees, you need to put all the utilities in your name on the same day.
  
  You can get cable and internet service at a later date (if you can survive for a bit!).  However, you can schedule your appointments now for a convenient date so you have the ability to work and watch your favorite shows.
  
• Contact your insurance company. Make sure you have your homeowners/hazard insurance starting on the date of settlement as well.  Also be sure to send a copy of the policy to your lender. You pay for the first full year at settlement, so no need to pay anything prior.
  
• Consider a Home Warranty. If you want to protect yourself in case anything goes wrong with your home, you do have the option of buying a home warranty.  The idea is that if something breaks, you would call the home warranty company to repair or replace it.  It can be a great option, especially for first-time buyers who are nervous about having to take care of a home.  I have companies I can suggest for you to learn more, understand what is covered, and costs associated with this type of policy.  

Get Prepared for Closing Day: 

When the big day arrives, you want to make sure you have everything you need, including any necessary funds. Don’t be rushing around at the last minute, so read over the list below carefully.

• What to bring to settlement – Bring your driver’s license and a certified check made out to the title company for the rest of your funds that you still owe unless you’ve wired your funds to the settlement company prior already.  If your check isn’t enough, you can bring a personal check and write it up to $1,000.  It’s always good to bring a personal checkbook for any last minute items.
  
  If you are moving funds around, please be aware that banks typically put at least a 3 day hold on large transfers. 

• BEWARE: Fraud alert – If you’d prefer to wire your funds directly instead of bringing a certified check, please with your attorney to send you wire instructions.   Please note that because of a recent email scam where buyers lost their entire funds for settlement due to wire fraud, you should have a call with the processor, where YOU call their office line and while you are on the phone with them, have them email you the wire instructions at the same time.  Some title companies now have secure portals.  Obtaining wire instructions through the title company’s secure portal is also an option if the title company has this type of platform, but call them to confirm the directions provided.   Please be very careful when wiring funds.  Below is a link to an article about it.  It has happened many times and even to the legendary real estate “Shark” Barbara Corcoran and I don’t want it to happen to you! 

http://wamu.org/story/17/08/08/hackers-allegedly-steal-1-5-million-d-c-couple-home-buying-phishing-scheme/

Obtain a copy of the Closing Disclosure form (I will help you with this once the lender sends the information the title company needs to complete this document). This form lists all final terms of the loan you’ve selected, final closing costs, and the details of who pays and who receives money at closing. Your lender should send you a Closing Disclosure at least three business days before closing.

• Final walk-through – We’ll meet at your new home for the walk-through. This is usually scheduled just prior to the actual closing. This is our opportunity to inspect the home and its condition right before taking ownership. It also enables us to confirm that any items that you and the seller have agreed to remain or convey are there.
  

This is an exciting time since you’re almost in your new home.  After these little details are done, you can put a big red check mark next to each item.  That always feels so good.  Then it’s time to head to settlement!  

The final article in the series is next week. (You’ll also get a bonus one on maintaining your home for week 13.) 

I hope you are starting to feel more knowledgeable about everything that’s involved with buying a home.  And, remember, you’ll have me on your side every step of the way so you never have to worry about forgetting something or having to figure it out on your own.  If you or anyone you know is thinking about buying a home, I’d love to help.  Email me at [amanda@nestrealestatequeens.com] and we can schedule a time to talk about your goals and dreams and discuss how, together, we can make them a reality.