Navigating the Closing and Post-Closing Milestones

The Home Stretch: Navigating the Closing and Post-Closing Milestones in Your Homebuying Journey

You’ve been waiting for the right moment to get the keys to your new home. You’ve worked hard, saved diligently for a down payment, and maintained a steady income flow to raise your credit score. Now, it all comes down to the final days of the loan process, which may feel like it has lasted forever. But the big question remains: When do you get the keys to your new home?

Buying a home can be a daunting process, especially as you approach the final steps. The ultimate goal is to move in as soon as possible, but when exactly will that happen? What are the necessary steps to get to that day, what is it officially called, and what should you expect? Let’s dive into the closing and post-closing milestones in the homebuying process.

When Do I Get the Keys to My New Home?

The timeline from proposing your bid to getting the keys to your new home typically spans approximately 40 to 50 days. However, several crucial steps must be taken before you can become the official owner of the home. Many homebuyers mistakenly believe that once the paperwork is signed, the sale is sealed. This is not the case. Here’s what you must consider before calling it your house.

Pre-Closing Essentials

Financing

First and foremost, you need to gather the remaining balance for the down payment and cover closing costs. The earnest money deposit you paid after your offer was accepted is not part of the total down payment; it’s a good faith deposit to show you’re serious about purchasing the home.

Besides the down payment, closing costs are additional fees related to finalizing your mortgage. These may include appraisal fees, title insurance, attorney fees, and more. It’s essential to have these funds readily available to ensure a smooth closing process.

The Purchase Agreement

The purchase agreement is a critical document outlining the terms of the sale. It includes:

• Buyer and Seller Information: Identifies both parties involved in the transaction.
• Property Description: Detailed information about the property being sold.
• Location: The physical address of the property.
• Closing Date: The proposed date for finalizing the sale.
• Purchase Price: The agreed-upon price for the property.
• Property Condition: Any stipulations regarding the condition of the home at the time of sale.

It’s crucial to thoroughly review the purchase agreement with your loan officer to ensure you understand all the terms and conditions. Look out for any additional items that might need attention before closing.

Other Essential Documents

You’ll need to be prepared to sign several important documents, including:

• The Deed: This physical document transfers the property title from the seller to you, serving as legal proof of ownership.
• Title Review: Ensures there are no issues with the property’s title that could prevent the closing.
• Mortgage Note: The legal document in which you agree to repay the mortgage under the specified terms.
• Deed of Trust: Also known as the mortgage, this document secures the loan and gives the lender the right to foreclose if you default.

Prepare for the Closing Day

Closing day is when all legal documentation is signed, funds are transferred, and the deed is filed at the county recorder’s office. It’s a day filled with excitement and, understandably, some nervousness. Here’s how to prepare to ensure everything goes smoothly:

Verify Your Funds

Double-check that the funds for your down payment and closing costs are ready and accessible. Any delays in transferring funds can postpone the closing process.

Review Your Documents

Review all the legal documents you will be asked to sign to ensure everything is in order. If you have any questions or concerns, address them with your loan officer before the closing day.

Confirm Identification

Ensure everyone listed on the mortgage has their identification ready. This typically includes a government-issued photo ID, such as a driver’s license or passport.

Check the Details

Ensure all details in the purchase agreement and mortgage documents are correct. Mistakes or omissions can lead to delays or complications.

Schedule a Walkthrough

It’s a good idea to schedule a final property walkthrough a day or two before closing. This ensures the property is in the agreed-upon condition and that any repairs or stipulations have been met.

Communicate with Your Loan Officer

Stay in close contact with your loan officer leading up to closing day. They can provide guidance and answer any last-minute questions, ensuring you have everything you need for a smooth closing.

Closing Day: The Big Day

On closing day, you’ll meet with your real estate agent, loan officer, and possibly an attorney to sign all the necessary documents. This typically takes place at a title company or escrow office. Here’s what to expect:

Signing Documents

You’ll sign a stack of documents, including the mortgage note, deed of trust, and various affidavits and disclosures. Take your time and review each document carefully with the closing attorney.

Transferring Funds

You’ll need to pay your down payment and closing costs. This is usually done via a certified check, cashier’s check, or a wire transfer.

*** Obtaining Secure Wire Instructions ***

To avoid fraud, it is critical to obtain the wiring instructions directly from the closing attorney through secure means. Wire instruction fraud and email spoofing are unfortunately common. Always verify wiring instructions by calling the closing attorney’s office using a trusted phone number and confirm the details before transferring any funds. Never use phone numbers or links provided in emails to verify wire instructions, as they may be part of a scam.

Receiving the Deed

Once all documents are signed and funds are transferred, the deed is recorded with the county, officially making you the homeowner.

Getting the Keys

After the deed is recorded, you’ll receive the keys to your new home. Congratulations, you’re now a homeowner!

Post-Closing Milestones

While getting the keys is a major milestone, there are still a few post-closing tasks to complete:

Move-In Day

Schedule your move-in day, coordinate with movers, and start moving your belongings into your new home.

Setting Up Utilities

Ensure all utilities (electricity, water, gas, internet, etc.) are transferred to your name and set up for service starting on your move-in day.

Homeowners Insurance

Confirm that your homeowners’ insurance policy is active and updated with the correct information about your new property.

Home Warranty

If your purchase includes a home warranty, review the coverage details and understand how to make a claim if needed.

Updating Your Address

After closing, One essential task is updating your address with the necessary institutions. This includes:

• USPS Address Change: Visit the USPS website or your local post office to file a change of address form. This service forwards your mail to your new address for a specified period (usually up to 12 months). It helps ensure you don’t miss any important mail during your transition.
• Banks and Credit Card Companies: Inform your bank and credit card companies of your new address to avoid any disruptions in service or missed statements.
• Insurance Providers: Update your address with health, auto, and other insurance providers to ensure all your policies remain current.
• Employers and Payroll: Notify your employer to update your address in their payroll system.
• Subscription Services: Change your address with any subscription services (magazines, online services, etc.) to ensure you continue to receive your deliveries.
• Friends and Family: Don’t forget to inform friends and family of your new address so they can reach you at your new home.

Home Maintenance

Start a schedule for regular home maintenance tasks to keep your property in good condition and avoid future issues.

Final Thoughts

The closing and post-closing milestones in the homebuying process are critical steps that require careful attention and preparation. Understanding each step and knowing what to expect can ensure a smooth transition from homebuyer to homeowner.

If you’re ready to start your homebuying journey or have questions about the closing process, the loan officers at Certified Home Loans in Raleigh, NC, are here to help. We’ll guide you through each step, ensuring you have the knowledge and support to make informed decisions and achieve your dream of homeownership.

Remember, getting the keys to your new home may be complex, but with the right preparation and professional guidance, you’ll soon be opening the door to your new life.