Home Buying Process

Step 5 – Close 

Congratulations, you have reached another milestone. You are ready for the final step in the Home Buying Process - The Close!

Closing day is the time where the seller transfers the rights and title of the property to you as the new homeowner.   It’s also the day you celebrate the completion of a process that at times can be a frustrating and exhausting one – the home buying process.

The Closing Date

The coordination of the closing is the phase of the home buying process where the quality of your home buying team really makes a difference.  A good lending partner will work in concert with your attorney and other interested parties to ensure that you close when you want to close….and prior to any rate lock or loan approval expiration dates.

Having an attorney and/or lender on your team that fails to plan in advance could result in closing delays, increased cost, and in extreme cases loss of the property.

Schedule Your Final Inspection

Your realtor will remind you to schedule your final walk through of your new property. This is your opportunity to make sure the seller made all necessary repairs noted in the sales contract and that the home is ready for you to take ownership.

The Closing Costs

Closing Costs are prepared on an itemized document issued by the U.S. Department of Housing and Urban Development (HUD), called the HUD-1.

The HUD-I is usually prepared by your attorney and shows all the credits and expenses for your purchase, such as; a credit for any down payment you made prior to closing and a subtraction for any legal or title fees due.  On line 303 of the HUD-I you will see the final amount that you will need to bring to closing.

The Good Faith Estimate (GFE ) that you received from your lender back when you initially applied for your mortgage was an advanced estimate of this HUD-I.  In many cases, the difference between the initial GFE and the HUD-I are minimal.

A good lending and legal partner will ensure that you receive a copy of this HUD-I statement in advance of your closing (typically 24-48 hours prior).  That way there are no surprises at the closing table.

During the Homeownership Now Event, a sample closing takes place where the expenses typically associated with buying real estate are reviewed.  Cost saving tips and creative solutions are explored as well. 

To attend the next Homeownership Now Event click here.