Closing on your new Boston home can be stressful when it should be exciting. Buying a home always includes going through a few hoops and over some hurdles. You’ve already gone through it all, however.
After spending the time to find the right home, negotiate a deal you like and secure the financing, the last thing you need is an issue at closing. Here are some of the best tips to help make your home closing stress-free.
Get Title Insurance
The first thing you must do is get title insurance. Most mortgage companies will require it, anyway, but even if you don’t need a mortgage, title insurance is helpful.
You want to make sure you get an owner’s title policy, however. The title insurance required by the lender will protect the lender, not you. An owner’s title policy will protect you from any claims to the property and from any losses due to fraudulent claims.
Agree on a Closing Date
You need to set a closing date with your title company and the seller. You want to make sure this fits with the time you need to be out of your current home. If you don’t want to miss work, ask for a closing in the evening or on the weekend. You can even schedule a closing at the end of the month to ensure you pay the lowest amount of interest at the closing table if you’re low on cash.
Review the Good Faith Estimate and the HUD-1 Settlement Sheet
You should already have the GFE and the HUD-1 documents from your lender. You want to review these before closing so that you can compare them to the closing documents. Some of the fees are not able to change, while others can go up as much as 10%. Any fees that have increased should cause you to question your loan officer to ensure everything is in order.
Get your Funds Together
You want to have all your funds ready to go when you head to the closing table. Find out what type of payment the title company will accept and make sure the money has been moved to pay closing costs, down payment and anything else.
Have Home Insurance Ready
You should already have homeowners insurance when you go to the closing table. You want to compare quotes and choose a policy you like for the home. You will likely need to have homeowner’s insurance before closing, so make sure this is taken care of.
Do a Final Walk-Through
Before closing, do your final walk-through and get any issues handled before you close. You want to make sure any repairs you requests were done and nothing major has been changed since you last saw the home. If the seller promised to leave specific items, such as appliances, make sure they have been left.
It’s also good to turn on the hot water and HVAC to make sure they are working. Even walking through the yard to ensure plants have not been removed is a good idea. If you do find issues, don’t be afraid to delay closing until the seller handles the issues.
Along with these tips for a stress-free closing, speak to your real estate agent about what to expect and what you should do. They will help to ensure the closing is all set and will go smoothly.