Page 12 - Title Insurance Explained With Closing Tips For Buyers and Sellers

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TIPS FOR HOMEBUYERS

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1. Meet all contingency requirements before
closing day. Most purchase agreements contain
contingencies that buyers must meet to make the
contract binding. Some common contingencies include
completion of the following: home inspection, appraisal
and financing.

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2. Ask your closing agent when the sale will be
7. Bring all pertinent documents to the closing,
final. What signals the end of your transaction can vary including, but not limited to:
from state to state. In some instances, it’s when you
sign final documents and money is disbursed. In others, • A valid, government-issued form of photo identification
it’s when the county recorder enters the documents
into the public record. You do not want to open credit • Proof of homeowners insurance
lines, make any other major purchases, or change jobs • Copy of the executed sales contract
until after the transaction is officially closed. Doing
so could impact any last-minute credit checks or • Home inspection reports
verifications of job status, which could jeopardize • Any loan approval documents from the bank
the sale.
• Any other relevant documentation (e.g., separation
3 agreements, divorce papers, living trust documents, etc.)
3. Have settlement funds ready before closing day.
Whether you intend to wire funds or pay with a certified
8. Be prepared for final closing fees. At closing, buyers
cashiers check, don’t wait until closing day to make 8
arrangements. Some banks require an appointment to sign several legal documents and are generally required to
wire funds, so contact your bank ahead of time to find pay closing costs for things such as their application, loan
out their hours and procedures. origination, mortgage brokerage, title insurance, appraisal

4 and property tax.
4. Carefully review wiring instructions and be
wary of any last-minute changes. Fraudsters are 9
9. Review documents carefully. You can do your due
increasingly using email, texts and phone calls to trick diligence by reviewing your Closing Disclosure (CD) prior
buyers into wiring funds to the wrong bank account. to closing day, which includes pertinent details of your loan
Keep the names and phone numbers of your closing and estimated monthly mortgage payment. On the day of
agent and lender handy and always verify wiring your signing, review your final loan documents for accuracy
instructions before transferring funds. and promptly alert your closing agent of any discrepancies.
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10. Do a final walk-through of the property, confirming that
5. Be available and prompt with communication. Be
prepared to provide and sign a lot of paperwork. Some the repairs you requested from the seller have been made.
documents can be signed online, while others may Be sure to test appliances, the HVAC system, hot water
need to be signed in-person in the presence of a notary. heater and electronics, and check the yard for any major
Prepare yourself and your work schedule accordingly, changes or items the previous owners left behind. If there’s
so you can respond promptly. If you will be out of town an issue, be sure to let your real estate agent know as soon
anytime during the closing process, be sure to tell your as possible.
real estate agent and closing agent. 11
11. Stay calm and take time to celebrate! It’s normal to
6 feel nervous when the reality of becoming responsible for a
6. Be flexible. Every transaction is different. Expect
the unexpected and remember that everyone involved mortgage sinks in. Think of your purchase as an important
in the closing process is working hard to close investment in real estate. You’ve worked long and hard to get
your transaction. here, so take a moment to celebrate this exciting milestone.