Buying a new home can be a daunting process, especially if you’ve never done it before. It is one of the biggest investments you will ever make, so it is crucial that you are familiar with all the steps in order to purchase your dream home.
Generally, the home-buying process typically starts with hiring a good real estate agent to walk you through everything and help you find a property that suits your lifestyle, budget, and needs. Whether you are looking for a luxurious condo in downtown Toronto or a cozy house in provincial Ontario, your realtor will be there to guide you along.
Once you choose the home you like, you can make an offer and enter the final stages of the home-buying process that lead to closing the deal.
However, with all the excitement involved, homebuyers often get confused about what closing day actually entails.
Here is a brief guide to help you have a successful closing day.
Be aware of the closing costs
In addition to focusing on putting together your down payment for your new home, you should also be aware of other financial aspects of the transaction, like closing costs.
These costs generally include a variety of items, such as a property appraisal fee, moving costs, legal and administrative costs, and land transfer tax, for which you will receive an estimate a few days before the closing date so you will have an idea of what you’ll need to pay.
If you are planning on buying property in Ontario, visit this website to learn more about the closing costs. Make sure you do ample research beforehand to know what to expect and compare it to the local averages.
Gather your team
When you are getting really close to owning your dream home, you don’t want to do something to mess it all up. Therefore, it is advised that you gather your team one last time to walk you through the final steps and protect you from unpleasant surprises.
For example, your real estate agent should be every step of the way with you to help you navigate the process and ensure the closing goes smoothly. Besides your agent, you may also need an escrow office, a mortgage professional, a home inspector, an attorney, and a title insurance agent.
Prepare all necessary documents
Before your closing date, you will most likely receive a list from your agent with everything you will need to bring on closing day. Because you will be signing a lot of paperwork, be sure to have your attorney by your side to guide you through the process and explain the purpose of each document.
The most important documents you will need to bring to closing day include:
- Identification documents
- Certified funds or proof of wire transfer
- Proof of homeowner’s insurance
- A copy of your contract
- Any additional documents requested by the lender
Order a home inspection
When you are buying a home, you want it to be in the best possible condition so you can protect yourself from costly repairs later on. One way of doing so is to order a home inspection which will allow you to discover any potential problems with the property.
For example, you should consider hiring a professional inspector to check the home for major issues such as foundation cracks, leaks, or problems with the electrical system.
In case you find anything during the inspection, you will have an opportunity to back out of the deal or ask the seller to fix it.
Complete a final walk-through
Even if the home inspection goes smoothly, you should still do a final walk-through before you move into your new house. Sometimes, damages could have occurred between the first inspection and your move-in date, so it is crucial that everything is fixed prior to closing.
Start by arranging a final inspection of all the appliances, heating, plumbing, and electrical systems. Make sure the seller has completed or has scheduled to complete all repairs that they have promised to fix.
Also, don’t forget to see if anything in the purchase agreement has been removed.
Final thoughts
It is no secret that buying a home can be a long and daunting process. However, when you have the right team by your side to guide you along, the entire procedure can go smoothly and with fewer unpleasant surprises on closing day.
All you have to do is familiarize yourself with the final steps of the home-buying procedure and seal the deal on your home purchase with confidence.
For more information, use our post as a guide and have a successful closing day.
Read Also: 6 Methods to Save Money on Your First Property Purchase
