Step 11. WHAT DO YOU HAVE TO DO WHEN CLOSING ON A HOUSE
The final steps when closing on a home can be stressful if you aren’t prepared.
Final Walk-Through
The final walk-through takes place during close. This is your final opportunity to make sure the house is in the condition you want. Confirm the seller has moved out and completed all repairs agreed to in the sales contract. Make sure that all appliances and systems are working. If there were any items the seller agreed to leave behind, make sure they are there as well.
Closing Appointment
In California, it is customary for a title company to act as a neutral third party for the closing appointment. As part of the closing appointment process, the title company will coordinate the signing of the closing documents, loan funds disbursement, escrow withholding, and document recording with the county.
What You Need to Bring When Closing on a House
- Valid photo identification
- Wire transfer instructions so you can pay any money required to close as found on your Closing Disclosure
Note that any person on the title of your home and/or is required to sign closing documents must attend.
Documents to Sign
- Final version of loan application
- State and federal disclosures
- Closing Disclosure – List of all of the costs related to the purchase of the home and loan application.
- Promissory note – The loan agreement between buyer and the mortgage company that contains the promise to repay the amount borrowed, the name of all borrowers, the property address, the loan amount, the loan term, the interest rate, and the late charge amount.
- Deed of Trust – California is a deed of trust state. A deed of trust is a legal instrument used to create a security interest in property. It is used to transfer the legal title to a trustee. The trustee holds it as security for the loan. If you fail to pay your loan, the trustee will start the foreclosure process on behalf of the mortgage company.
The Last Steps – Funding and Recording
Once you have finished signing the closing documents, the title company will return the documents to the lender and request funds necessary to close the purchase transaction.
The title company will then send the deed of trust to the county recorder where the property is located. The county recorder will record the deed and provide the legally required public notice.
What to do After Closing on a House
Get Your Keys
Once the paperwork for the title company has been signed, it has been confirmed that the loan is funded, the monies have been accounted for, and your deed has been recorded, you can get your keys.
Make sure to get keys to the mailbox, utility box, sprinkler system and shed. If applicable, collect any gate codes, security codes and garage door openers. If the house is a smart-home, change the system access codes.
Some people choose to replace the locks, garage door codes, and other access codes.
Change the Address
You need to change your address for the following:
- Post office
- Driver’s license
- Bank
- Employer
- Creditors (auto loans, personal loans, student loans, etc.)
- and others.
Also, when you close on a house, send your new address to family and friends.
Get a Home Warranty
A home warranty protects homeowners from costly and unexpected repair bills.
So what exactly is it?
A home warranty is a one-year service contract that covers repairs and replacements of most major home appliances and system components due to failure, standard usage, and other problems due to age.
Moreover, a home warranty covers what your insurance doesn’t. It will typically cover most major components of large home systems, such as HVAC (central heating ventilation air condition), water heaters, plumbing, electrical, and may cover regular appliances such as washers, dryers, refrigerators and stoves. Other common appliances that a home warranty covers includes garage doors, ceiling fans, doorbells, and garbage disposals. Finally, some plans allow the purchase of optional coverage for your spa, second refrigerator, swimming pool, pumps and more.
Don’t assume that a home warranty covers everything. Read through the stipulations and ask questions to make sure you have the right plan with all the items you need covered. The cost of an annual home warranty contract is usually between $300 and $800.
A home warranty is not the same as homeowners insurance. Homeowners insurance covers a buyer in the event of a disaster, such as a hurricane or a hailstorm. Homeowners insurance doesn’t cover repairs as a result of normal wear and tear. A home warranty, on the other hand, does.
Legal Disclaimer
This home buyer series is intended to provide general information regarding the process of how to buy a house in Arizona. It is not intended to provide buyers with legal, accounting or financial advice. You are advised to seek the services of a skilled professional this those fields.
Additionally, this homebuyer series does not set forth all qualification criteria for any of the loans described herein; all interested persons must successfully meet qualification criteria and complete the application process to obtain such loans.