This is the time to be in touch with the lender to provide whatever is
necessary for the final loan documents, for the seller to take care of
any requested repairs, and for the lender to go through the underwriting
process.
As a buyer, you will want to arrange for the utilities to be turned
on when the seller's is turned off. Don't forget to have the phone
company ready to turn on your new service as well. Make sure all
magazines, bills, and family and friends, have your new address!
Anything related to school registration should also be done well in
advance. Moving preparations should be made as soon as you know the
offer is approved. Check out my When You're
Ready to Move page for tips and help. The utility changes can be
done online and are on this page as well.
At the Closing!
The closing is almost always done at the title company (an exception
could be an out-of-state or out-of-country buyer, in which case
documents are Fed-exed and need to be notarized). Buyer and seller close
at the title company separately, and the keys are not given to the buyer
until the recordation, which may be that afternoon, or the next morning.
The recordation, which is the recording of the deed, is considered the
actual "closing", so time your movers accordingly.
Buyers (and sellers) and their agents will be given an audit sheet
(the settlement sheet) showing the closing costs beforehand, so there
are no surprises, and the buyer will know exactly how much his cashiers
check should be.
Your loan officer will have gone over the final closing costs
involved with the closing as well just prior to closing.
Other closing costs will consist of the title company's processing
fee (escrow settlement fee), recording of the deed, pre-paid interest*,
homeowner's insurance, homeowner's insurance impounds, property tax
impounds, and a notary fee.
*Pre-paid interest - Since mortgage loans are due on the first day
of the month, and properties can close any day of the month, the
interest will be prorated and paid at this time.
Homeowner's insurance premium is paid at the closing. However,
since the mortgage company will be paying the continuing payments, it
will divide the annual premium by twelve to get an estimated monthly
amount and hold 2 months in your impound account.
The same is true of the property tax. Property taxes are prorated at
the closing and the buyer is responsible for the taxes from the closing
date on, which may start based on the closing date, and therefore
prorating gives the seller any prepaid tax refund. Taxes are divided by
twelve and 2 months is held in your impound account.
And
on to our next "step!" There is one more thing. Your
moving experience! |
