Almost There … Pre-Closing Details for Buyers

Buying a Home 101 series – Week 11

This step-by-step series will take you through the entire home-buying process — from finding a buyer’s agent to closing day, and all the details in between. Every buyer will find this information-packed series easy to follow and understand. Make sure to tune in for the next couple of weeks as we wrap up this series!

You don’t want any surprises when you close on a home. Everything should be set in motion long before closing day to ensure a smooth transition to becoming a homeowner.

Get Prepared for Closing

When the big day arrives, you want to make sure you have everything you need, including any necessary funds. Don’t be rushing around at the last minute, so read over the list below.

Week Before Closing Tasks

Walk-Through – You should do a final walk-through the week before closing to ensure everything is in ship shape and just as it was when you write your offer. You should check that any repairs are completed properly. Confirm that all systems (HVAC, plumbing, electric) and appliances still work, and that they are the same appliances you originally saw. Confirm that any items that the seller agreed to leave there. Take any measurements you may need.

Review the final lender Closing Disclosure at least 3 days before signing. This form lists all final terms of the loan you’ve selected, final closing costs, and the details of who pays and who receives money at closing. You can’t sign closing documents until at least three business days after receiving this, so you or your broker need to make sure its sent in plenty of time.

Consolidate Funds Now – Get all your funds into an account(s) that you can either wire from or get a certified check from locally. If you are moving funds around, please be aware that banks typically put at least a 3-day hold on large transfers. 

Funds to close – When escrow calls to set up your signing appointment, ask them for exact amount you need to bring. It should be very close to the final Closing Disclosure. The funds can be delivered to Escrow by cashier’s check (easy to bring to signing appointment) or by wire transfer. If you plan to wire, ask Escrow for the wiring instructions so you can go to your bank and set up the wire transfer, usually 2 days before closing. If you are using an investment account, like Charles Schwab or Merrill Lynch, there is an extra step which can take an extra day, so let them know if that’s your plan.

Be aware:  Due to rampant wire fraud, wire instructions will NEVER be provided by regular email. They will only be provided by secure portal or by phone.  Do not wire any funds without calling the escrow company first to confirm the account number and wire instructions on a phone number obtained from their official web site or an original transaction summary.

Signing – The day you sign your documents is not the day your transaction closes. This is the thing most people get confused about. In some states, all parties sit around a table on closing day and sign documents together, and pass keys off right then and there. In Washington, that is not the case. You usually sign documents at least 2-3 days before closing. Keep your schedule flexible the week before closing. If you are going to be out of town that week, let escrow know so they can make arrangements.  A signing appointment usually takes 45 minutes to 1 hour. You can go into the escrow office to sign, or they can arrange to have a mobile notary come to your home or office. 

What to bring to your signing appointment— Bring your driver’s license or official government ID and a certified check made out to the escrow company for the funds you still owe.  It’s always good to bring a personal checkbook for slight changes in funds due. A personal check can be accepted for up to $1,000. 

Utilities and Change of Address – You can start getting utilities set up or transferred and submit a Change of Address to the USPS. The Post Office can take up to 2 weeks to implement mail delivery change. It’s free in person but costs a nominal amount online. If you live in the area and have utilities at your current home, you can transfer it to your new home starting the day of closing. Internet can sometimes take up to a week or two to set up at your new residence, so start early. You have three business days after close to get your utilities accounts switched over to your name without incurring additional fees. When we are working together, I’ll provide a Change of Address Checklist.

5% to Charity – As you may or may not know, I donate 5% of my commission to a charitable organization of my client’s choice. I have always made it a life choice to donate 10% to others. I figured it would be more fun, make more impact, and expose me and others to great organizations if I let my clients choose where 5% goes. Start thinking about what organization you’d like to support. I’ll post a little blurb with a donation link so others can learn about the organization.

Keys and Possession – Contractually, you can’t go into your new home until 9pm on closing day. However, if the seller has already moved out, they might let you have keys as soon as the sale has recorded which can be afternoon or by end of business.

Once you’ve reached this point in the process, it’s very exciting since you’re almost in your new home! You don’t want anything to be delayed or forgotten right now so you and your broker should confirm that all tasks have been completed.

I hope you now have the confidence and knowledge to buy a home!

Just remember, throughout this part of the process you are not alone—I’ll be in touch every step of the way making sure everything goes smoothly and you know what to do when.  Plus, we’ll review all your settlement before you sign it at closing, so that you aren’t nervous on closing day! I’ve got you!

Next week is the final article in the series!  It came too fast, so I’m also sending you a bonus article about how to maintain your home after you move in.  Stay tuned for next week’s article — How to Make Your Closing Day a Success.