Finalizing your mortgage is perhaps the most crucial step in the home-buying process. It’s important to be prepared by creating a pre-closing checklist for home buyers and a closing checklist for buyers, so you know what to expect. The lenders here at Bank Five Nine have decades of experience and serve as your trusted advisor throughout the entire process. Our goal is to ensure that you feel completely comfortable with each step. Here is what to expect for a closing checklist:
Immediately Upon Acceptance of the Final Contract:
- Provide your lender with a copy of the contract and earnest money receipt.
- Discuss your interest rate locking options.
It’s important to be pre-qualified before you start looking for a home because typically you have only five days from the date of the contract to apply for the mortgage loan. It is crucial to provide your loan officer with all the supporting documents they request as soon as possible to alleviate a delay in closing.
Your lender is federally mandated to provide you with your Loan Estimate and other related disclosures within three business days of receiving your mortgage application and property address. The Loan Estimate lays out important information about the loan you applied for, including the estimated interest rate, monthly payment, and total closing costs for the loan.
If you have agreed with your lender to accept your Loan Estimate electronically and e-sign it by email, this is the quickest and most efficient way to receive them.
Regardless of how you receive the Loan Estimate and disclosures, it is crucial you view and sign them immediately after receiving them.
- Order a home inspection if it is written in your contract.
- Determine if you would like a radon inspection and order it from the home inspector.
During the Home Inspection:
- Take any measurements for furniture, window
- treatments, appliances, etc., that you may need.
- Take any photos of the house, if desired.
- Ask the home inspector any questions you may have concerning the home’s condition or construction.
One to Two Weeks Following the Acceptance Date of the Final Contract:
- Have your real estate agent create a list of items, noted by the home inspector, that you request the seller to remedy.
- Reserve a moving truck or schedule a moving service, keeping in mind that they tend to get booked up toward the end of the month.
- Notify your lender to order an appraisal if your home inspection is satisfactory to you. Typically we will not order an appraisal until after you have viewed the home inspection.
Two Weeks Before Closing:
- Contact your insurance company to purchase a homeowner’s insurance policy for your new home. Your lender will need an insurance binder from your insurance company 10 days before closing.
- Check in with your lender to determine if they need any additional information from you.
- Get a change of address package from the U.S. Postal Service and begin the change of address notification process. Arrange for a change of address with all of your financial accounts directly, and contact your utility, telephone, internet, cable, and/or satellite companies about a switch or termination.
One Week Before Closing:
- If you haven’t already heard from your lender, touch base with them to ensure that your closing date is on schedule and confirm the time and location.
- Request the certified funds you’ll need for closing from the appropriate financial institutions. Some funds, such as stocks and home equity loans, take three days to clear your bank account.
- Make certain that your homeowner’s insurance agent provided your lender with the appropriate insurance documents.
Three Days Before Closing:
- If applicable, verify that any required repair items in the inspection amendment have been addressed.
- Your lender is federally mandated to provide you with your Closing Disclosure at least three business days before closing. The Closing Disclosure lists the final terms of your loan, final closing costs, and the details of who pays and who receives money at closing. Review your Closing Disclosure for accuracy to ensure you completely understand the figures and to verify you are receiving any contracted credits from the buyer.
Day Before Closing:
- At this time, you also can request to see your entire closing package. While your lender will review each document in your closing package with you during the closing, you may want to request the closing package in advance if you prefer to read each document in detail.
- Conduct a walk-through of your new home with your real estate agent to verify that the condition of the house is the same as when it was placed under contract.
- Double-check that inspection items have been addressed.
- Receive your certified funds for closing. Remember, personal checks are not accepted.
Day of Closing:
- Bring a photo ID for each mortgage holder.
- Bring your certified funds.
- Bring any additional documents your lender may have requested.
A Closing Checklist for Buyers on the Day-of:
Plan on your closing lasting approximately one hour. First, you will review your loan documents with your loan officer. Your lender will counsel you on each document and answer any questions you may have. Your real estate agent does not need to be present while you review your personal financial information unless you specifically request him or her to be there. After reviewing the loan documents, you may be joined by the sellers and any real estate agents. At this point, you will be signing documents pertaining to the purchase of the property. This is also the time to ask the seller any questions about the property that haven’t already been answered. The seller also will provide you with keys and garage door openers to your new home. Many people choose to have the locks to the house replaced or re-keyed for security.
We have a team of mortgage lenders who will provide a pre-closing checklist for homebuyers, who are also ready to help with all your home financing needs. Learn more about Bank Five Nine lending and choose a lender to get started by clicking here!