|How Do I Prepare For Closing?
By Sandy Gadow
Double-Check the Money
Prior to the actual closing day, there are several things you
should do to be certain that your real estate transaction will
close on time, and that everything will go smoothly. A day or
two before closing, you should review your final closing
statement or HUD-1 Statement, whichever is used in your area of
the country. You should go over all the calculations and be
certain that you are given credit for all your deposits and any
other credits due to you from the seller or for other items
agreed upon between buyer and seller. Go over all the lender and
title and escrow fees, to be sure they are what you had been
told and that you agree to them. Check the math calculations on
the closing statement. Errors do occur.
Review the Documents
Carefully review the preliminary report or the guarantee of
title insurance, to verify the exact legal description of the
property and any liens, encumbrances or other items which may
have been discovered on the property. Be sure that all items are
removed that you did not agree to. Verify that the title or
escrow agent has your correct vesting, or the way you want to
take title to the property. This is important because to correct
a vesting on a deed later on is time consuming and can be
avoided if care is taken when escrow is closed.
Re-Inspect the Property
Besides the paperwork which you must review and verify, you
should reinspect the property once again just prior to closing.
Is everything the way you expect it to be? Have all the
necessary repairs or other corrective work been done that were
promised to you? This is important so that you don't arrive at
your new house and find unexpected surprises.
Check and Double-Check
The most important thing to remember is that before closing you
want to be certain that all the conditions of the purchase
contract have been met. You want to be sure that all directions
given to the closing agent have been performed. Before signing
your name to any closing documents, check and double check that
everything is correct, interest rate, fees charged and condition
of the property.
Copyright 1999, Sandy Gadow