How to Close on the Sale of a Home You Are Buying

Closing on a home refers to the point when all the terms of the contract have been met and you are ready to sign the final loan papers that will transfer ownership of the property.

Difficulty: Moderate

Instructions

Things You'll Need:

• Real Estate Attorneys

1. Review all loan documents. Compare them with the estimates you were given, and make sure you are getting the loan you agreed to. Do this 5 to 10 days before closing.

2. Get a final estimate from the title or escrow company of the money required to cover the remainder of the down payment and closing costs. Funds are usually required to be paid by cashier's check.

3. Make sure all inspections have been satisfactorily performed, all work completed, and clearances for completed work provided. Do this prior to signing any loan documents.

4. Do a walkthrough of the property prior to signing loan documents. Make sure all agreed-on work has been completed to your satisfaction.

5. Contact the phone, water, garbage, gas and electric companies and establish service in your name. You should do this at least 14 days prior to close of escrow.

6. Sign all documents.

7. Arrange to get keys once the transaction is recorded.

Tips & Warnings

• In some states, an attorney handles the closing.
• Be sure to read all the paperwork you will be signing, and follow up to make sure that these steps have been taken.
• Once the home is in your name, have the locks changed and get new keys made.
• Do not sign loan documents until all necessary work has been completed or an arrangement has been made to hold funds in escrow to cover that work.