Getting the Most Out of Your Closing

New HomeGetting the most out of your home closing is one of the final steps between you and owning your home. Here are a few tips that will help you properly prepare for your closing.

1. Homeowners Insurance

Homeowners Insurance is required if you need a loan to purchase your home; however, it is a necessary investment regardless of requirement. Here are some of the current homeowners insurance policies currently available:

  • HO2 – Broad Form Policy, protects against 17 listed perils
  • HO3 – Special Form Policy, provides all risk coverage with some exclusions
  • HO4 – Renter’s Insurance
  • HO6 – Condos and Co-ops
  • HO8 – Older Homes

2. Pre-closing Inspection

Most individuals who are in the process of or are thinking of buying a home aren’t aware that a second home walk-through inspection can be requested. A second inspection gives the buyer added opportunity to avoid problems in the future and guarantee that everything is prepared and ready according to any agreements.

Those purchasing a pre-owned home should check all doors, windows, and ensure that all appliances are in working order. Individuals purchasing a new home should check that all details in the home (door knobs, fixtures, windows, appliances, etc.) are correct and working properly. Anything missing, broken, or different from any agreements should be catalogued and brought up at closing.

3. Closing Costs

Your lender will provide you with a written good faith estimate of all expected closing costs. The following list are just some of the items typically found in most closings; however, every lender will not require you to pay every fees and some fees could be waived.

  • Attorneys Fees
  • Lender’s Points
  • Title Search and Recording Fees
  • Title Insurance
  • Home Inspection
  • Application Fee
  • Miscellaneous Fees
  • Private Mortgage Insurance
  • Optional Home Warranty

4. Things to Bring to Closing

The following list are what is typically required at a closing:

  • A cashier’s or certified check to cover the closing costs you owe. Personal checks as well as cash are typically not accepted.
  • Photo identification such as a valid driver’s license or passport
  • Copies of each applicable insurance policy

After you are finished with the closing and have signed all of the necessary documents, the closing is complete and you can prepare to move into your new home!

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