After you’ve secured your mortgage pre-approval and found the house you desire to purchase, home closing is your final step before the home is yours. To further explain, once you’ve found the home you want to purchase and you make your offer, a contract is then drawn up if the seller accepts your offer. In the contract, a date is set called the closing date; this date marks the day that everything is set and you become the owner of the home. It’s important to have a closing date when it comes to purchasing a home because it gives the seller time to take care of anything that they need to and it gives you time to complete everything needed in order to secure your mortgage. Home closing dates can range anywhere from weeks to several months out from the date the contract was originally drawn up.

Below, we’ll take a closer look at home closing and what you need to know about the process.

Create a Closing Checklist

While you are waiting on your closing date, it’s important that you take care of some things in the meantime. Make yourself a checklist of the following things and start ticking them off.

• Home Appraisal - You will need to pay for this part, but it’s essential to have the home appraised for its current value; your mortgage lender is not going to want to pay more for the home than it’s worth, and you’ll need to show documentation of its value.
• Home Inspection - This is mostly for you; you don’t want to get stuck purchasing a home that has problems not visible or shown to you. You could end up in a bad financial situation if you buy a home with a lot of problems that require fixing.
• Final Loan Documents - While it probably feels like you’ve given your mortgage lender everything but the kitchen sink, do a final check in with them and make sure they don’t need any other documentation or if they need more recent copies of certain things. You don’t want to be caught off guard with something they need that you don’t have.
• Do a Final Walk Through - This is done towards the end and close to your closing date. Essentially, this is to ensure the home is still in the agreed upon the condition and that the seller has left everything in the expected state.
• Secure Insurance for Your Home - Homeowners insurance is required in most states, and most lenders will not close unless you have proof that the asset is covered. So, going ahead and getting your insurance squared away is pretty important.

Check in With Your Home Buying Contacts

Everyone you’re dealing with during your home buying process has different parts that they play to ensure the success in your closing on and purchasing of the home. Be sure to communicate with them during the process to see if there is anything additional you need to do, or if they have any advice or requirements you need to meet. Make sure you stay in communication with your mortgage lender and escrow officer, your real estate agent, attorney (if you have one), the insurance company, and home inspector.

Potential Issues

As with anything, there are certain things that can cause delays or problems with your closing. It’s important to be aware of these areas that you can see potential issues in and prepare yourself for what to do if things go wrong.

• Home inspection problems can cause delays if there is a problem, like water damage or mold, that needs to be corrected before the home can be purchased.
• Appraisal issues can cause delays if the home appraisal is lower or higher than expected. This issue can potentially cancel your loan or require a loan revision.
• Loan problems requiring your attention or correction can arise. You also may see something in the final loan contract that you don’t agree with and that will require revision.
• Walk through issues can happen if the seller changed or removed something that was not expected.