Thursday, November 29, 2007

Helpful Hints For A Easier Closing

Whether this is your first closing or if you have been through it before, closing on a purchase of a home can be stressful and all the paperwork can seem overwhelming. However, there are several things that you can do prior to the actual closing day that will help to ensure that your real estate transaction will go smoothly and help reduce the stress and anxiety. • Set the closing date that is best for you. Before you rush to set the date to close, consider that realize not all closing dates are equal. Be sure to sure to set a date that's in your best interest. Some things to consider: Does it give you enough time to prepare your move? Is it near the end of your lease so you won't pay unnecessary rent? Are there tax implications (if it falls at year's end, would you be better off pushing it to January)? • Gather all necessary documents and receipts. Organize all the items you need to take with you to the actual closing, you do not want to forget something and delay the closing. It is a good idea to create a file folder so you have everything in one place. Some items to remember to bring along are: your drivers license or other photo ID, proof of homeowners insurance-bring both the insurance policy and paid receipt, personal checks are not accepted for closing costs so be sure to bring a cashiers check or money order in the correct amount. In addition, if your loan requires that you must satisfy a specific condition in order to close, be sure to have proof that you have met lender conditions or contingencies. For example, if closing the sale on a previous residence was a condition of loan approval, you need copies of those closing documents to close on your new home. • Do a final walk through inspection. This is your last chance to view the property before taking ownership of it. Make sure everything is as you remember it (no new damages, all conveyed items present, etc.). Also, if you made the contract contingent upon certain repairs (based on the home inspection), now is the time to ensure those repairs have been made. Make sure that your contract allows you to examine the property within 24 hours prior to closing. If, during the walk-through, the buyers find major problems or violations of the purchase contract, they have the right to hold up the settlement until things are fixed. • Review all documents. 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. Take the time to check and double check 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. Before signing your name to any closing documents, make certain that everything is correct, interest rate, fees charged and condition of the property.
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