Final Preparation for Your Closing

With 30-60 days to close there is a lot more to do than just move. Real Estate Attorney Rick Carter and Para Legal Kathy Holtshouser discus the many pitfalls of those final days leading up to the closing and how beneficial having a good real Estate Attorney is. Everything from a well drafted mortgage contingency and conditional approval letter to protect your deposit to what may or may not be in your bank statement for the last 6 months. Does your house need flood insurance? Who should the closing check be made out to? When should you do the final walk through? What about homesteading? All these questions and many humorous comments from one of the comedic greats, Tony V!

1. Make sure everything you have negotiated is included in the offer. The offer is a binding contract so all important terms should be included.

• Has the seller agreed to leave certain personal property?
• If there is a gray area on whether the property should remain as a fixture make sure that item is listed in the offer.
• Is your offer subject to having you get a mortgage?
• Is your offer subject to the house appraising out at the purchase price?
• Is your offer subject to you selling your present house?
• Is your offer subject to a home inspection?
• Is the offer subject to the seller making any repairs to the property?
• Is the offer subject to you getting a closing cost credit from the seller?

2. If any of these items are included in the offer make sure they also get included in the Purchase and Sale agreement.
3. If you are applying for a mortgage make sure you apply for the mortgage under the terms stated in the Purchase and Sale agreement. So if the mortgage financing paragraph says you need to apply for the loan of up to $250,000.00 by January 1st you cannot apply for a loan above that amount and past that date. If you do and you get turned down for the loan the Seller may say you did not use diligent efforts in applying for the loan and therefore your ability to get your deposit monies back may be jeopardized.
4. Make sure you get all of the information to your lender in a timely manner. Save all documents and emails you send to the lender in case they are lost or another department is looking for these same items.
5. Please keep an eye on the mortgage financing date stated in the Purchase and Sale agreement. If you do not receive your mortgage approval letter by that date or if you receive a conditional approval letter you need to ask the seller for an extension of the financing date. If your loan gets denied after the mortgage financing date your escrow money may be at risk.
6. Make sure your lender has approved your homeowner’s insurance in a timely manner. Make sure the property does not need flood insurance. That may be a very costly expense that was not originally planned for.
7. Prior to closing your lender will be delivering to you a Closing Disclosure or what is commonly known as a CD. The lender is required to make sure that there is proper evidence that you have received that CD in a timely fashion. Accordingly, make sure you are available to receive said CD.
8. Prior to closing you will be given an amount on how much to bring to your closing. Make sure you bring that amount as a cashier’s check made payable to yourself drawn from an account verified by the lender.
9. Bring two valid forms of identification to closing.
10. Make sure at closing you make arrangements to receive the optional owner’s title insurance policy and homestead affidavit.