From Offer to Ownership:

A Roadmap Through the Closing Process

Reaching the closing stage is a vital aspect of buying/selling a home, usually spanning 30 to 45 days. However, for numerous buyers, this period feels endlessly prolonged. What steps should you take?

1. Keep a close eye on all communication channels

To make sure everything closes on time and everyone is happy at the end of the day, it’s critical for buyers to manage communication. 

2. The Appraisal

Typically, arranging for the appraisal falls under the lender’s responsibilities. Given that appraisers may be scarce, as the buyer, you’re entitled to inquire about the scheduling and outcomes of the appraisal. Therefore, it’s advisable to touch base with your lender and loan processor to discuss the appraisal plan.

3. Get the inspection

A professional and certified home inspector will conduct a thorough examination of the house to identify any possible issues. Discuss with your real estate agent who will arrange for the inspection—you’ll likely want to attend.

4. Consider secondary inspections

Some inspections might not be as necessary in certain areas as others. Additional inspections could include:

• Radon – a colorless, odorless radioactive gas that occurs naturally from the decay of uranium found in soil, rock, and water.

• Pest – Common examples include insects like termites and cockroaches, rodents, and other wildlife that can invade homes, agriculture, and other spaces.

• Termite – Destructive insects that feed on wood, potentially compromising the structural integrity of buildings and homes.

• Chimney– A thorough examination of a chimney’s structure, lining, flue, and venting system to ensure they are in safe and proper working condition.

• Roof – Assesses the condition of a roof, identifying any signs of wear, damage, or potential leaks that could compromise the home’s structural integrity and interior.

• Foundation – Evaluates the stability and condition of a home’s foundation to detect any cracks, shifts, or weaknesses that could threaten the structure’s safety and longevity.

• Electrical – A detailed review of the home’s electrical system, including wiring, outlets, switches, and electrical panels, to ensure they meet safety standards and are in good working condition.

• Plumbing and water – Examines the condition and functionality of a home’s plumbing system, including pipes, fixtures, water heaters, and drains, to ensure there are no leaks, blockages, or potential water quality issues. This assessment aims to identify any necessary repairs or upgrades to prevent water damage, improve water efficiency, and ensure the safety of the home’s water supply.

• Septic – Scrutinizes the condition and functionality of a home’s septic system, which includes the tank, drain field, and associated components, to ensure they are processing waste effectively and not posing environmental or health risks.

• Well – Evaluates the operational aspects and safety of a private water well, including the pump, tank, and water quality, to ensure it provides a reliable and contaminant-free water supply.

• HVAC – Examines the heating, ventilation, and air conditioning systems to assess their efficiency, safety, and overall condition, ensuring they operate properly across all seasons.

• Mold – A detailed search for visible and hidden mold growth within a home, assessing areas prone to moisture accumulation that could support mold development.

5. Request any repairs

Together with your real estate agent, you will draft a repair addendum to present to the seller, outlining any repairs required on your behalf.

6. Secure homeowners’ insurance

Now is the time to find a good insurance agent if you’re not already working with one. You’ll need recommendations for how much you’ll need in coverage, which will cover not just the structure but all the contents (in other words, your belongings), plus your liability if someone gets hurt on your property.

7. Manage your utilities

8. Make sure your financing is in order

Collaborate closely with your mortgage broker and loan processor to ensure you provide all necessary documents in a timely manner, preventing any financing delays.

9. Don’t change jobs

Any major changes to either your income or expenses could cause a snag in your mortgage loan.

10. Refrain from making major purchases

You’ve got years to come in your new place to start kitting it out, so take a deep breath instead of pulling out your wallet. (This includes putting a big purchase on a credit card!)

11. Wait to buy furnitureOn the same note, buyers often can’t help but think of all the furniture they’ll need (but don’t yet have) in their new home. Not only is your credit score a factor, but there’s also the risk of the unknown — what if something happens before you get to closing?

12. Keep track of all your bank deposits

If you’re getting a big windfall in the form of a gift or an inheritance, let your mortgage broker know as soon as possible what’s going on, and ask how you need to document it with the lender.

13. Pay your debts on time

Make sure that you aren’t behaving in any ways that might cause a big dip in your credit score. This includes ensuring that your bills are all paid on time and in full.

14. Review the title reports

The title report outlines the property’s ownership history and any existing liens. Additionally, a title agent or closing attorney will inform you about other peculiarities, such as easements on your future home, which are crucial to understand before moving in.

15. Track your transaction costs

Make sure your finances are in order and track your transaction costs so that you aren’t caught by surprise (and unable to pay) when a bill for the appraisal or inspection arrives, or when you’re at the closing table and have to pay closing costs.

16. Book the final walk-through

Coordinate with your agent to schedule a final walk-through prior to sitting down at the closing table. Should any issues arise during the walk-through, discuss your options with your agent.

17. Triple-check over the phone before sending any money

Wire fraud is a reality in the real estate industry. If you receive an email that appears authentic, requesting you to wire funds, it’s crucial to verify its legitimacy by making a phone call. Reach out to your real estate agent or the closing attorney’s office to confirm the request.

18. Keep tabs on your closing responsibilities

The period leading up to closing may feel prolonged, yet it’s filled with important tasks. For buyers to navigate this process smoothly, the key lies in diligently managing their obligations to advance the transaction.

Elevate your home buying journey with the RMF Realty team at your side! Don’t let the complexities of the closing process deter you. Take charge by partnering with us, ensuring you’re informed, prepared, and ahead of every step. Contact RMF Realty today to move forward with confidence and ease. Your dream home awaits, and we’re here to make that dream a reality. Let’s make it happen together—reach out now!