Buying Your First Home Step by Step - Step 4 closing

Buying and closing the deal on  your first home

Congratulations, if you've made it to this step you're truly a first time home buyer. You've successfully found a home, made an offer and negotiated the sale. All that's left is closing the deal. However, closing is the point where things often go wrong and all the hard work by you, your agent and everyone involved can go down the drain. But if every one does their job, crosses all the T's and dots all the I's your closing should go smoothly and you'll be a home owner.

What happens at a real estate closing

The closing is the point in the transaction where the money is exchanged and title of the home will be transferred from the seller to you. The attorney or title company will create an escrow. Your down payment, a check from your lender and all other funds which were agreed to be payed at closing goes into the escrow account. The attorney will then cut checks to the seller, the sellers lender and to all parties who are due cash at the closing. Hence the term "closing escrow"
By the time you get to the closing, every detail in the contract should be worked out, agreed upon and accepted by both you and the seller. Your agent should be well experienced in closings and will take care of most of the leg work. Your job will be simply to read and sign the required documents.

What you can do to make sure your closing go's smoothly

Snags at closing usually occur when one party misunderstands one or more parts of the contract agreement, misunderstands how much of the closing cost he or she is supposed to pay, Or one party doesn't bring the cash or required documents to the table. As a buyer you cannot control what the other side of the transaction does. But you can control what you as the buyer does to make the closing go smoothly.

As your representative, your agent will work with the sellers, or sellers agent, the lender and the attorney or title company to make sure all the required closing documents are in order and copies are received by all parties involved.
Your job is to be sure that you thoroughly understand the agreement and you're obligations before you get to the closing table. The law requires that the attorney supply all parties involved with a copy of the HUD statement at least 24 hrs before closing. The settlement or HUD statement is an itemized list of all the costs and the amount of funds that will be paid to every party at closing.
It's a good idea to be proactive. Contact your agent and the lender once every day to make sure they have everything they need from you right up until the closing date.

Tips for closing on your first home

Before the closing you should inspect the home again thoroughly. If there were repair or improvement contingencies in your sales contract that were agreed upon, you should be sure that they are made and the work was done correctly.

This should be done just after or before the signing of the purchase agreement. But If you haven't already done so. Its a good idea to have a professional home inspector inspect the home before the closing.

Ask your agent and your lender for a list of any and all documents or other items that you will be required of you to bring to closing.

If you're currently renting a home or apartment be sure that the landlord is aware of your situation and that you will be closing on your new home and moving soon. You should also contact any utility companies and let them know that you will be moving soon. If your new home is serviced by the same companies they may be able to change the address and leave your account open.

Once the closing is completed. Make reservations at a nice restaurant, go out and celebrate a smooth closing and your new status as a first time home owner! congratulations.