Completion of Repairs

• If repairs are agreed upon in the contract, they must be completed prior to closing.
• It is appropriate to request receipts from workmen showing that the work has been completed.
• We will make an appointment to "walk through" your home just before closing to check the repairs and observe the condition of the house.
• Often, sellers have a drawer set aside with material for the buyers - warranties, keys, garage-door openers.
• When possible, I try to arrange an "orientation" meeting with the sellers so that they can show you how to operate the sprinkler, security, pool, etc.

Set up Utility Accounts

• A week or so before closing it will be necessary to call your utility services and request new accounts. They should start on the closing date. 

Homeowners Insurance

• You will need to finalize your insurance coverage on the house.
• Your insurance agent will send the bill for your policy to the title company, and it will be paid by the closer or you can pay for the policy in full prior to closing and have a paid receipt sent to your lender and title company.
• It is usually done this way to meet the lender's requirement that a policy be in effect before funding the loan.
• If you are paying cash, you will need to make sure that your home is covered.  You can save money by having your cars and home with the same company.  It is also advisable to look at homeowners insurance in the same way we view life insurance…a necessary cost that you don’t use unless it is catastrophic.  If you make many small claims the insurance company will raise your premium and you will end up paying much more than if you  paid for the small claims out of your own pocket.  Therefore you should have a high deductible which will give you a lower premium.

• The seller's share of the current year's taxes will be credited to you at closing unless the seller has paid the taxes for a period past the settlement date. Then you will have to reimburse the seller for the period he has paid when you will own the property. The title company will check and verify when taxes have been paid through and the due dates and supply this information to the lender. If you have an escrow account for taxes and insurance, the money needed to fund your escrow account will be calculated separately by the bank and those instructions will be sent to the title company.  Any credit from the sellers to you for proration of taxes, homeowners association, or condominium fees will be credited to you on page one of the settlement statement.  The money needed to fund your escrow account will be collected by the bank on page two of the settlement statement.   

Closing Statement

• A day or two before sitting down to sign documents, the closer will prepare a statement showing your charges and credits, and the "bottom line" - the funds you need to bring to closing.
• On this closing statement you will receive credit for your earnest money.
• I will review the statement and forward you a copy. This will give you a chance to ask questions and understand the charges prior to attending closing.
• You may have your closing funds wired to the title company, or you may bring a cashier's check, which is also called certified funds, to closing. (Regular checks cannot be used for more than $1,000.)

Signing Documents

• Closing is usually held at a title company.  Remember to bring your drivers license.  The title company is required to verify who you are for the bank.
• The closer will compile the legal documents, order title insurance, payoff liens, prorate taxes, prepare a closing statement, pay the seller, and record documents.
• The closing agent does not represent either party. 
• The buyer and seller do not have to attend together, although many do.
• Sometimes sellers pre-sign documents before the closing date, if this is more convenient.

• After documents are signed, the closer must fax them to your lender for review. Funding of the loan will take place on the day of settlement.  Dispersement of funds to the seller does not take place in Virginia until the sale is recorded at the courthouse.  This is usually the day after settlement unless that coincides with a weekend.
• Congratsulations on your new home!

<<Back To Buyers