To ensure a smooth and successful closing, preparation is essential for both buyers and sellers. Review this comprehensive checklist to be ready for the big day:
For Buyers
1. Review the closing documents.
You should receive your closing documents at least three business days before closing. Take the time to read through them carefully so you understand what you’re signing. Double-check all details, including names, addresses, and numbers, to ensure there are no errors. Make note of any questions or concerns and address them with your agent or attorney before the closing.
2. Check the fees.
Compare your closing disclosure with the most recent loan estimate you received. While some fees may vary slightly, there shouldn’t be any major discrepancies at this stage. Confirm all costs, including title fees, taxes, and any other charges, to avoid surprises.
3. Review seller responsibilities.
Go over your final walk-through checklist to ensure the seller has fulfilled their responsibilities, such as making agreed-upon repairs or leaving the property in the condition promised. If anything isn’t as expected, discuss it with your agent prior to closing.
4. Be payment ready.
Ensure you have the necessary funds for the down payment, closing costs, and any additional fees. This is usually required in the form of a certified check or wire transfer. Confirm the exact amount and delivery method with your lender or closing agent.
5. Bring any required items with you.
The settlement process can vary from state to state, here are some items that are often required:
- Government-issued ID such as a driver’s license, military ID, state-issued ID, or passport.
- Certified check or cashier’s check to cover your down payment, closing costs, prepaid interest, taxes, and insurance. You may also be able to pay these costs in advance via wire transfer. In this case, you’ll want to bring a receipt for the transfer.
- Proof of homeowners insurance
- A copy of your contract with the seller
- Any additional documentation requested by the bank
6. Ensure all parties who hold title to the property can attend the closing.
State-specific laws may require the spouse of the parties in title, even though their name does not appear on the deed, to sign certain documents when obtaining a mortgage. If anyone with ownership interest is unable to attend the closing, contact your closing agent or attorney in advance to discuss alternative arrangements, such as signing documents via power of attorney or rescheduling the closing.
For Sellers
1. Prepare to transfer the title.
Ensure all necessary documents are in order for the title transfer. This includes having any required deeds signed and ready for submission.
2. Finalize property condition.
Make sure the property is in the agreed-upon condition. Complete any repairs or improvements promised in the contract to avoid last-minute disputes.
3. Organize keys and access items.
Gather all keys, garage door openers, and any access codes or security information that the buyer will need. Double-check that everything is in working order.
4. Review closing documents.
Similar to buyers, sellers should review their closing documents carefully. Confirm that all financial obligations, such as outstanding loans or liens, are settled as agreed.
By taking these steps, both buyers and sellers can ensure that closing day proceeds smoothly, culminating in a successful and satisfying transition of ownership.
