You spent months searching for your dream home and, at long last, you found it! You’ve since negotiated a deal, secured a mortgage, and now you’re ready to finalize everything. But do you know what to expect when closing on a home? To prepare you, here are some things to look out for:
Schedule a Pre-Closing Visit
Before taking the final plunge, you should have one last walkthrough of the property to ensure it is in the same condition as before and nothing has changed. Your RealtorⓇ will be able to add a term into your contract that allows you to go back and view the property before closing.
Obtain Property Insurance
Arrange any home insurance well in advance to make sure you are covered as soon as the property legally changes hands and becomes yours. Many mortgage lenders will also require you to have insurance on the property to secure financing.
Meet with Your Mortgage Broker
A month or so before closing, make sure to meet with your mortgage broker to confirm they have everything they need to satisfy the mortgage lender. This could include your proof of income, or the money for the down payment. Advise your lender of your closing date so they can send all paperwork to your lawyer in good time.
Meet with Your Lawyer
The final signings will take place at your lawyer’s office on closing day, thus allowing you to legally take possession of the property. Once your lawyer has received the funds from your mortgage lender, they are able to pay the seller, register the home in your name, and provide you with the deed and the keys to your new home!
What Happens on Closing Day?
Closing day, otherwise known as the day of completion, is the day that the property in question officially passes hands from seller to buyer. Much of the legal paperwork will be completed in the weeks leading up to closing day, but any final signatures required and the official transfer of funds will be confirmed on this day.
Know Your Closing Costs
Final costs to be paid on closing day will include the remainder of your down payment, minus the deposit, as well as the land transfer tax, any remaining legal fees, property tax adjustments, and more. Make sure you are aware of all closing costs well in advance and have discussed them with your lawyer to ensure you have the required funds to close. Total closing costs can vary from 1.5% to 4% of the purchase price.
For more information about what happens on closing day, or to get started on your search for your dream home, contact our team of expert RealtorsⓇ at Royal LePage Performance Realty today!