Consolidate Funds – You will need certified funds to make whatever payment you will need at closing. If you plan to move or consolidate funds, allow 10 days for all checks to clear so your bank can verify funds before issuing a cashier’s check payable to your title company. Coordinate with your closer if you plan to use a wire transfer of funds instead of a check at closing; be sure to arrange to have the funds transferred early enough to have them available at closing.
Homeowner’s Insurance – Your lender will require a binder for your first year of homeowner’s insurance prior to closing, which you can pay as part of closing. Most insurance companies give a discount if you use the same company for your home and car(s). If you are purchasing a townhome or condo, blanket insurance is usually included in your association fees but you will also need an HO6 policy.
Title Insurance – Lenders require that you purchase title insurance to protect their investment in your property. Your title company will give you the option to purchase an owner’s policy for yourself as well. It’s a one-time fee that protects you as long as you own the property. Do I really need title insurance? What is it anyway?
Taking Title – Decide how you want to go into title. Most people go into title as individuals, but some go into title as a trust. If you are going into title as a trust, consult with your attorney. If there will be more than one owner of the property you can go into title as joint tenants or tenants in common.
- Joint Tenants – you own the property in equal shares, and if one owner dies that share automatically passes to the other owner(s) regardless of a will
- Tenants in Common – you can divide ownership shares equally or unequally; if an owner dies, the property goes into probate and follows the owner’s will
Transfer Utilities – arrange for transfer of utilities at your new address; give them your closing date, sometimes they will ask for the name of the current owner
Expect actual closing to take about an hour. You will leave with the keys to your new home!
