The 3 Most Important Things to Consider When Closing on a Home
When home sellers set out to calculate how much money theyâ€™ll make from their sale, they often forget to factor in closing costs. Itâ€™s hard not to feel blindsided by these costs, especially because they come at the end of the sale, and it isnâ€™t always clear what exactly youâ€™re paying for. You can enter your mortgage details in aÂ seller closing costs calculator to get an estimate of the fees you’ll pay at closing.Â
When you’re approaching the finish line in the journey to your new home, you want nothing to go wrong, right? Thatâ€™s why weâ€™ve put together a list of the 3 most important things to consider when closing on a home.Â
Timed Funding Requirements
You most likely deposited earnest money when you signed the purchase agreement, which is a deposit made to a seller indicating the buyer’s good faith, seriousness and genuine interest in the property transaction. If the buyer backs out, the earnest money goes to the seller as compensation. If the seller backs out, the money is returned to the buyer. To complete your purchase, you’ll have to deposit additional funds into escrow. Since the original earnest money deposit is generally applied towards the down payment, it is important to arrange for the various payments required at different times, before the deal is closed. Failure to offer the required money in time can lead to the risk of the deal getting canceled, earnest money going to the seller, and you still being charged for the various services you availed.
The walkthrough serves as a final check for any remaining, unresolved issues with the home. Turn on and off every light fixture. Run water and check for leaks under sinks.Test all appliances. Check garage door openers. Open and close all doors. Flush toilets. Inspect ceilings, walls, and floors. Run the garbage disposal and exhaust fans. Test the heating and air conditioning. Open and close windows. Make sure all debris is removed from the home. The final house walkthrough gives buyers the chance to make sure everythingâ€™s in order before the window for negotiations closes for good.Â
Signing the Mortgage Documents
Now, itâ€™s time for the big day! When you go to sign the mortgage documents, you will need to bring a cashierâ€™s check to pay closing costs, along with a photo ID. After you sign the documents, itâ€™s time to celebrate! You are now officially a homeowner.