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  • Writer's picturebhuskeyfromhousetohome

Closing on a Home From a Buyers Perspective:

Updated: May 18, 2020

If you have arrived at this point in the home buying process, then congratulations you are almost there! In the weeks before the closing here is what to expect:

1. Get a home inspection: Hire someone for a home inspection. This will happen just before closing and may keep you from possibly purchasing a home needing repairs and giving you a bad deal. This is something that you as the buyer will obtain and pay for and well worth the money.

2. Appraisal/ Loan: The appraisal is something that the mortgage company will order so that they don’t end up in the negative. The home that you are purchasing must appraise for the amount of the loan. It really is good for both of you. It is included in the closing cost. Note: Do NOT go out and charge things during this time or quit your job; it can change your income/ debt ratio and your loan may not go through. I have seen this happen more than one time; you have come too far to mess it up now so just wait until after closing to buy the new drapes and you will be glad you did.

3. Homeowners Insurance: This is required by the mortgage company in case something with the home becomes damaged or needs replacing. They must be assured that they will be able to recoup the money that they are lending, and this is usually included into your monthly mortgage. You will be asked and you will have to decide which company you want to go with.

1. Final walk-through: You as the buyer will be able to do a final walk-through 2 days before the closing and should take advantage of this. During the "walk-through" you will want to make sure that all items that needed to be corrected in the home inspection report were completed. Also, you will check for any changes that may have occurred since then such as damages to the property.

5. Delays: At times, there may be delays in the closing process. For example, if the mortgage company is having problems with finishing up the loan process, the appraisal is not on track or the corrections have not been completed. Anything can cause a delay, and this is where it pays to have a good real estate agent that is willing to assist you in this process. Just know that it does happen and that you must be patient and go through all the hoops in order to close.

Note that there is a lot of paperwork that you will be looking over during closing.

Take your time and read them even if you feel you don’t have the time. One of the most important things is the closing disclosure as this has your loan terms, fees and the closing cost. You should get this a few days before to read so that you can sign the loan papers during closing with a better understanding. If you have any questions closing is the last chance to ask before you become the homeowner.

Each state varies concerning closing; some states require that both parties be there and others do not. In the majority of closings, both parties will be there along with both realtors or attorney.

Closing costs are typically between 2% and 5% of your purchase price.

Reach out to your lender and local real estate professional to discuss the home-buying process and a budgeting plan for you to purchase your dream home- without any surprises.

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