Closing day is the most exciting day in the home-buying process. However, it takes careful planning before you finally take possession of your home. We’ve put together a comprehensive planning guide to make closing day a breeze, so you know exactly what to expect.
Choosing the Right Closing Date
The right closing date ensures you and your lender have enough time to get organized without interfering with the seller’s plans. This can be a high order to fill. For example, when interest rates are rising, you want to close before your pre-approved mortgage rate runs out. On the other hand, if you’re bidding against other offers, it can pay to be more flexible on your closing date. If the seller is motivated, they might be excited about a quick closing date, while if they are less enthused about the move, a little extra time might win them over. We ensure we choose the best closing date to meet your needs while keeping the bank and seller happy.
Planning for Closing Day
Giving yourself ample time to plan ensures nothing is missed and stress is reduced. Unless you have pressing reasons to move sooner, we advise giving yourself about six weeks to plan your move and make arrangements before closing. That includes:
• Notifying your utilities/services of your moving date
• Organizing your ID and documents required for signing paperwork
• Searching for movers and booking them
• Arranging for home insurance effective the day of closing
• Organizing everything your lawyer and lender requires
• Informing your lender of the purchase so they can set the wheels in motion to discharge the mortgage
• Providing address changes and activation dates to your service providers, including insurance, banks, subscriptions, cell phone providers, etc.
Addressing these details early reduces stress and ensures all stakeholders in the transaction have enough time to get their ducks in a row.
Confirming Everything
About four weeks before closing, confirm everything is in place, including:
• Double-check that your movers are booked
• Call your lawyer to make sure they have what they need, including mortgage approval documents
• Ask your mortgage broker if they need anything further and have them send you a summary of costs and deductions
You also want to ask your real estate agent to set up another visit to your property. This is your opportunity to take measurements and reacquaint yourself with your new home.
Finalizing Details
Two weeks before closing, check in with your lawyer to see if everything is going to plan. Arrange a final walk-through of the house with your real estate agent. The home must be in the same condition it was at the time of the home inspection. If not, anything out of order can be addressed prior to closing. Finally, ask your insurance company for your "binder letter" with the details of your coverage and expiration date.
Closing Day Arrives
On closing day, you meet with your lawyer to transfer funds and sign the final papers. The seller’s lawyer confirms all financial and legal obligations are fulfilled and then transfers property ownership and possession to you. You receive your keys and can then visit the house to ensure everything is as expected. Anything that doesn’t align with the agreement should be reported to your lawyer and real estate agent immediately. If all is well, crack open the champagne and share some selfies on social media!
At North Group, we ensure your closing day goes smoothly, setting you on a path of happy memories and experiences worth talking about.
