If you’re changing addresses during a busy moving month (e.g., June or September), the choice companies tend to book … It is usually a good idea to pay down debt and close the account, whether it is a credit card, furniture account or local store account. What Not To Do Before Closing on A House Change jobs, quit your job, or become self-employed Buy a car, truck or van unless you plan on living in it Use your credit cards excessively or let your payment fall behind Underwriters are like real estate detectives—it’s their job to make sure you've represented yourself and your finances truthfully, and that you haven’t made any false or misleading claims on your loan application. ). Tick these things to do before closing on a house off your to-do list, and your move-in might prove a (more) seamless affair. By law, you are entitled to get this form three days before your closing meeting and should be in the same format as the Loan Estimate you got after applying for your mortgage. Most purchase agreements have contingencies—things that buyers must do before the real estate transaction is official, explains Jimmy Branham, a Coral Springs, FL, real estate agent at the Keyes Company. 2) DO NOT use credit cards excessively or let current accounts fall behind. Don’t get cajoled or intimidated. 4 Hardwood Flooring Trends You Should Know About, Have You Served? Before closing, do not spend an additional amount of money on other things. Assume that everyone has a set of keys to your new home. Make sure you have the following items when you head to the closing table: Plan to sign a ton of paperwork. The above 13 tasks are all very important and will improve the overall home buying experience. You’ve finished negotiations and accepted an offer from a buyer. Keep this closing process list handy to know you've done what you need to in order to close the deal. This may be a “duh” or no brainer statement, but, many people tend to overlook the fact buying a home is a big purchase. 3. As the seller, your biggest priority during the week before closing is to get the home ready for the new owner. ©1995-2020 National Association of REALTORS® and Move, Inc. All rights reserved.realtor.com® is the official site of the National Association of REALTORS® and is operated by Move, Inc., a subsidiary of News Corp. Daniel Bortz has written for the New York Times, Washington Post, Money magazine, Consumer Reports, Entrepreneur magazine, and more. Anything that was promised to you in the purchase agreement no longer applies after the settlement is complete. You've made that down payment, but before you can go to the closing table, your home loan must go through the underwriting process. If we had not seen the documents a day or two before, the errors would have delayed the closing by at least a day. Three Things Buyers Need to Do Before Closing on a House. That includes making a down payment on a car, boat, or similar large purchase that has to be financed. It looks like Cookies are disabled in your browser. Planning on ripping out that avocado-green kitchen as soon as you sign the closing docs? This official document outlines your exact mortgage payments, the loan’s terms (e.g., the interest rate and duration), and additional fees you’ll pay, called closing costs (which account for anywhere from 2% to 7% of your home’s price). Make a personal call to each one to make sure they have your new address. You’ll want to hop on that to-do list as soon as possible to wrap up any lingering … Closing disclosure: This multi-page behemoth replaces the old HUD-1 form. After you've shopped around for the best rate, meet with your mortgage rep to sign off on the papers and to determine your payment details. Turn off all switches for lights and fans. You definitely don’t want to find yourself bereft of help on moving day itself, begging that friend with a pickup truck to bail you out. A screaming child or a wandering dog. The closing agent or your real estate agent can give you a copy of the closing statement, known as the HUD-1, detailing how much you owe at the closing table. 5 Reasons You’ll Want a Veteran-Friendly Real Estate Agent, How the COVID-19 Pandemic Has Forever Changed the Process of Selling a House, Any paperwork the bank required to approve your loan, A government-issued photo ID (Note to newlyweds who just changed their name: The ID needs to match the name that will appear on the property’s title and mortgage. There are several mistakes you may make as a would-be homeowner that will derail a closing or drive your interest rate higher. Nobody else cares as much about the closing as you do, and you may have to live with their mistakes for decades. This one comes with a HUGE caveat: Generally speaking, you should institute a spending freeze during the escrow period. 17 things to know about closing your house deal Closing day in a house deal is a milestone for both the seller and the buyer. Here’s a checklist if you are SELLING: 1. Here are the four things you need to know as a buyer before closing on a house: #1. Do not increase the credit limits on your cards. 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