You’re all excited to start moving into your new home–you did your searching, made an offer, it got accepted, and now you’re heading towards closing day as a first time home buyer. While things might seem like they’re on auto-pilot, you need to be aware of some issues that might come up on closing day that could delay your closing.
Even though closing may be scheduled for 10:00am, things come up in life for everyone involved, and you could be waiting several hours, days, or even weeks to close if problems arise with the lender’s paperwork or the title of the property you are buying.
Here is a quick list of tips to ensure that your closing day goes smoothly even if it gets delayed:
1) NEVER under any circumstances buy plane tickets, bus passes, or hotel accommodations for friends or family who are coming into town to help you move. If closing is delayed and you aren’t able to move in while they’re in town you will have lost that money. If your loved ones want to help you move, plan on waiting several days or weeks until after your closing date to have them come out and help. Better safe than broke!
2) NEVER under any circumstances schedule a utility hookup or furniture delivery within 3 days after closing. If things get pushed back you’ll be scrambling to call people and re-schedule their dates and times. It just makes for a hectic day because you’ll be handling your re-scheduled appointments along with the reason closing was delayed in the first place. In a nutshell, it’s not fun.
3) ALWAYS bring your ID or Driver’s License with you to closing. You’ll need this to prove you are the correct person to be signing the documents that day. In addition to your ID, also bring your addresses for the past 10 years. Most title companies require this to make sure you’re not wanted for a crime or a terrorist. Seems weird, but probably a good thing to comply with!
4) ALWAYS call the utility companies a week before your closing and tell them you will be moving on your closing date. Make sure not to schedule any appointments with them for hookup within that 3 day window, but tell them you’ll be transferring service into your name on closing day. You don’t want to pay unnecessary cancellation or hookup fees if you can help it. And most utility companies will transfer the bill into your name free of charge before service is cutoff from the previous owner.
5) ALWAYS clear your schedule on the day of closing. Having other appointments, meetings, or schedule activities can make the day stressful and panicked when it really should be fun and triumphant! Closing itself usually only takes about an hour, but things can change. So be flexible and roll with the punches.
6) ALWAYS check with your lender a day or two before closing to see what your Cash to Close amount is. Most likely you will have to go to your bank and obtain a Cashier’s Check for this amount and bring it to closing with you. Make sure it’s made out to YOUR NAME, and not the title company. At closing, you will endorse it over to them for deposit.
7) ALWAYS do your Final Walk through the morning of closing before you go to sign the paperwork. Once you sign the documents, you own that property no matter what state it is in. So make sure nothing has drastically changed since your inspection and everything that you agreed on in the contract is the way it’s supposed to be. If it has changed, then you can take care of it before you own the house. Your real estate agent should help you with this walk through.
