Closing the Deal Or What to Do on Settlement Day?

You've just spent the last few months of your valuable free time looking for a new home. You finally found it, picked just the right one for you, put down a deposit and are in escrow! But what's after the home inspection, and negotiations and mortgage application? Are you now asking yourself, "Self. What should I expect to happen on closing day???

How can I keep this train on the tracks?!???

If this is you - then first, a BIG Congratulations!!! Settlement day is usually the culmination of a sometimes long and arduous process. It's the day you get your reward for having a lot of patience and determination on the road to this lofty goal. Here's what to expect in a nutshell.

Things to Have in Place In Advance of Closing:

Switch the Utilities into Your Name as of the Day after settlement. (In NJ, Seller is required to keep them on until settlement day).

Schedule your telephone service to be in place on the day after settlement.

Make sure that you've purchased a Homeowner's Insurance Policy and get binder information and a paid receipt for 1 years policy amount to your Title Officer asap, but no later than a week before closing or your closing could be delayed.

Title Insurance. The closing will not be scheduled without the title insurance policy in place, but do make sure that you got your Title Insurance Commitment. The actual policy will arrive after you settle.

Final Walk-Through:

You should start the day with a final walk-through of your soon-to-be-home. I usually do this not more than a couple of hours before closing. Why? Because homes are not static; they have energy and water and some moving parts. I've found that anything can and does happen when you're purchasing a home. The closer you arrive to your actual closing time, the less likely you'll have any surprises at the home, like a broken water heater or mold in the basement, when you pull up with the moving van after closing. Allow a half-hour for the walk-through, an hour if you're checking for repairs.


You should check all of the major electrical and mechanical systems, (make sure ahead of time that the power will be left on until closing); you should check to make sure that any repairs negotiated during the home inspection were made. Some home inspectors offer to tag along on the final walk-through either gratis or for a small fee. You will make sure that anything that was conveyed to you with the home via the agreement of sale, (aka sales contract) is actually in the property and in working order.

You also want to check for things like garage door openers - if they're not left make sure you get them at closing. Also, make a note of the number of doors and locks to make sure that you know what keys to expect to receive at closing. (sometimes fences, sheds, or poolhouses have a lock on them).

CLOSING THE DEAL!

After the Walk-through you'll head to the closing either at your Realtor's office or Title company. You will need to bring your photo ID. Your driver's license is best but other forms of ID are acceptable - Check with your title clerk.

You will need a cashier's check for the amount of money you are to bring to the closing table. (You should get this figure either from your Realtor or title officer a day before closing). Once you arrive at the conference table, you'll be greeted by a thick pile of papers -the mortgage package. You'll do a lot of signing - the most important paper to the mortgage company is your Promissory Note which is your promise to pay.

Also, Do change the locks as soon as you can. I recommend that you do it the day you settle.

If you do not plan to move into your home right away, check on it as frequently as possible. Introduce yourself to your new neighbors and ask them to keep an eye on the place. Perhaps you may want to share your cell phone number with them and ask them should they notice anything awry at the home, if they'd kindly contact you.

After all of that is off of your To-Do list; sit back and enjoy the homeownership ride. But, remember to buckle up! The ride is sometimes a bumpy one!


Kim Thomas, Voorhees, NJ Real Estate Broker; www.KimThomasHomes.com; www.NJHomesNearPhilly.com; www.KimCanHelp.com