Ready, Set, Close!
There’s no wrong time to buy a new home, or sell your current one. Our guide demystifies the process by taking you through every step—from getting your finances in order to closing and everything in between.
Checking these final seven tasks off your list will help you close on time.
You’re so close to collecting the keys to your new home. From hiring an agent to finding a house that fits your criteria to making an offer and inspecting the property, you’ve traveled a long road to get here.
Before you can close, though, there are a few more tasks to accomplish.
1. Get All Contingencies Squared Away
A contingency is a clause in your contract that allows you to walk away from a potential home purchase. It’s likely that you have a mortgage contingency and an appraisal contingency in your sales contract, and possibly contingencies for a home inspection, termite and mold inspection, and a home sale contingency (meaning the purchase is contingent on you selling your current home before settlement). Make sure all contingencies have been resolved, according to the terms of your sales agreement, before closing.
2. Review Your Closing Disclosure Form
If you’re getting a home loan, you’ll receive what’s called a Closing Disclosure at least three business days before settlement. This five-page form will spell out the terms of your loan, including its size and interest rate, mortgage fees, estimated real estate taxes, insurance, and other terms. Take the time to review the document line by line for accuracy. If you have any questions, contact your home loan expert or title company. Check out the Rocket Mortgage® guide to reading a Closing Disclosure. Also, visit OnlyWithRocket.com to learn about Rocket’s BUY+1 program, which could help you save at closing.
You’ll want to do a walkthrough of the home with your real estate agent shortly before closing—ideally the morning of closing—to confirm that the property is in the same (or better) condition as the last time you saw it.
3. Do a Final Walkthrough
You’ll want to do a walkthrough of the home with your real estate agent shortly before closing—ideally the morning of closing—to confirm that the property is in the same condition as the last time you saw it (or in better condition if the seller made repairs). Rocket Mortgage® offers a final walkthrough checklist to help you ensure that everything is in order.
4. Bring the Proper Documents
To wrap up the transaction, you’ll need to arrive at the closing table with the following:
- A government-issued photo ID, such as a driver’s license or passport
- A cashier’s check or wire transfer to cover the remainder of your down payment, prepaid interest, prepaid property taxes and other closing costs listed on your Closing Disclosure form
- Proof of home insurance (nearly all lenders require you to take out a homeowners insurance policy)
Note: Things will work a little differently if you choose to do a remote closing.
3 Tips To Avoid Closing Delays
If you want to ensure that your closing occurs on the scheduled date, take these reminders to heart.
- Respond To Underwriting Requests ASAP Your lender’s underwriter might request additional documentation to process your loan. Provide these documents pronto to speed up the approval process.
- Secure a Homeowners Insurance Policy Early On You’ll need to provide proof of insurance at closing, so don’t wait until the eleventh hour to obtain a policy. Shop around to find the best offer as soon as you go into contract on the property.
- Check That Home Repairs Have Been Made Verifying that any requested repairs were completed at least several days before closing will help avoid surprises at the final walkthrough.
5. Rope In Your Support Team
You’re not the only person who ought to be attending closing. These people may be required to join you:
- Your real estate agent
- Your loan officer
- Your attorney (if you have one)
- A title insurance representative
- Your closing agent (in some cases, the title insurance representative will serve as the closing agent)
6. Schedule Transfer of the Utilities
It’s a good idea to set up the transfer of utilities, such as electric, gas, cable, and internet, in advance to ensure there won’t be any lapses in coverage.
7. Sign On the Dotted Lines
At closing, you’ll sign a large stack of documents to make the whole thing official. Take your time and read everything carefully; consult your attorney or title agent if you have questions. Once all the paperwork is signed, the house is yours—meaning it’s time to get the keys and toast to your new home!
1. The following offers are available only to clients who are purchasing a home and financing with Rocket Mortgage: (1) Client purchasing with a Rocket Homes Partner Agent through Rocket Homes will receive a lender paid credit that is 1.25% of their loan amount. For example, a $200,000 home purchase price minus a 5% down payment of $10,000 results in a loan amount of $190,000. Client would receive a credit of 1.25% of the $190,000, for a credit of $2,375 toward closing costs. (2) Client is referred by a real estate agent to buy a new home will receive a lender paid credit that is 0.50% of their loan amount. Offer does not apply to new loans submitted through an Executive Loan Officer, mortgage broker, through Schwab, or on nonagency jumbo loans, non-QM loans, bank statement loans, second lien products or team member loans. Offer may not be redeemed for cash and is nontransferable. Offer cannot be retroactively applied to loans where the rate has been locked. Conditions and exclusions apply. This is not a commitment to lend and is contingent on qualification per full underwriting guidelines.
There’s no wrong time to buy a new home, or sell your current one. Our guide demystifies the process by taking you through every step—from getting your finances in order to closing and everything in between.
Ready, Set, Close!
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