What to Know before home closing
You’ve finally made an offer to buy that dream house. Your offer is accepted by the seller. You’ve handed the copy of your purchase agreement to your mortgage lender. And the closing date has been finalized. What now? What should you know before home closing? We will discuss that. But first, let’s start with some basic information.
What is Closing?
Closing is the final step in the real estate purchasing process. This is when the remaining paperwork is signed, and the money is exchanged. The sellers get their proceeds, and the buyer gets the ownership.
What to Know Before the Closing Day
There are many things that can take a wrong turn before the closing day. We don’t mean to scare you. We just want you to understand these potential issues so you can take proactive measures to avoid them.
- Your mortgage loan can still be denied, even after the lender has pre-approved it. The pre-approval does not guarantee anything. You must stay qualified till the closing. The changes in your financial situation can rise issues.
- If – for any reason – you withdraw or transfer funds before the home closing day, your lender is likely to ask for a written explanation. They will probably ask to see a record of the transaction.
- You are supposed to bring a cashier’s check with you on your big day. This check should cover exactly the amount of your closing costs.
- Your actual closing costs might differ from the initial estimate given by the lender, when you first applied for the loan.
- You need to ensure your homeowners insurance policy is in place.
Hire a Real Estate Lawyer
Since buying a home is a complicated legal transaction, it’s in your best interest to have someone with expertise in law working by your side. Hiring a real estate lawyer can help you smoothly navigate the legal technicalities involved in closing a deal.
On the home closing day, your lawyer will exchange documents with the lawyer of the seller. If both the real estate lawyers agree that all documents are in place, your lawyer will give the other lawyer a check for the balance due on closing and will receive the keys to your home.
Looking for an experienced real estate lawyer?
Home Legal Cost is a real estate law firm located in the GTA. We have wide experience serving the best interest of our clients involved in residential real estate transactions across Ontario. We serve: Toronto, Mississauga, Brampton, Caledon, Markham, Etobicoke, Scarborough, Richmond Hill, Ajax, Aurora, Pickering, Don Mills, Weston, North York, East York, Rexdale, Willowdale and Downsview.