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Step 12: Getting Ready to Close From a transaction perspective, the time between the mortgage committment and the time of closing is usually pretty quiet for buyers. If you are putting more money down than you have already paid in earnest money, then you will need to arrange to make those funds available at the closing table.
During this time, the seller's attorney is working hard to clear the title report and get a copy of the plat of survey (for houses only) to your attorney for review. If something notable appears on the survey, your attorney will discuss it with you and notify you of your options. Condominium buyers do not receive surveys.
The hard work for you now, of course, is beginning the process of preparing to move: securing a mover, starting to pack, setting up new utility accounts, enrolling your children in the new school system, etc. At your request, I will be happy to provide you with local resources to help make this hectic time as smooth as humanly possible.
Pre-Closing Estimates
If you need or desire to do work on the new home before moving into it, we may ask the sellers' permission to have professionals come to estimate the work needed so that the work can be performed as soon as possible after closing. I have a long list of tried and true service providers, tradespeople, movers, utilities, etc. that I will share with you at your request. Please remember that not all sellers will allow us pre-closing access to their home, but I will do what I can to arrange it wherever possible.
As a support service to you, I am happy to be present (with or without you) for estimates on any repairs or upgrades you'd like to perform on the home. I find that many buyers appreciate not having to take off of work to get these estimates.
Closing Funds
A day or two before closing, your attorney (or mortgage broker) should have a fairly accurate preliminary HUD-1 statement. This statement breaks out all costs and credits due to both parties to the transaction, and gives you a roughly accurate idea of how much money you will need to bring to the closing table. I suggest that you pad the closing funds by at least a couple hundred dollars in case there are some unaccounted-for expenses or a mistake in the preliminary HUD-1. As an additional safety net, I always recommend that you bring your personal checkbook.
Closing funds must be in specific forms, which your attorney will review with you. Most commonly, my clients use Cashier's Checks made out to themselves.
NOTE: Title companies do not typically accept personal checks for amounts over $250. Pad the closing funds as heavily as you comfortably can, as any overage will be returned to you at the closing table by the title company.
"Missing" Costs on Preliminary HUD-1s
One of the more commonly omitted items on the preliminary HUD-1 is your attorney's fees, which are typically paid out at closing. Ask your attorney if their charges have been included in the figure you're asked to bring to the closing table.
Insurance
For single family homes and multi-unit buildings, you will need to provide proof of coverage for a full year of homeowners' insurance prior to, or at, closing. Your mortgage broker will inform you ahead of time as to the lender's specific coverage requirements, to which you may add additional riders for personal property as needed.
Condominium associations have policies to cover the structure of the building and the common elements such as the structure and roof. I or the listing agent will arrange to provide a copy of this policy to the lender prior to closing to meet their requirements. No individual homeowners insurance is typically required for condominium owners to close; however I highly recommend purchasing a homeowner's policy for your personal property before you move anything into your new condo.
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