Did you know that the buyer has to bring certain things to a real estate closing? The seller seems like the one that should be responsible for everything, but there are certain things you need to worry about as well. If you don’t have the required documents, you may end up delaying your closing, which means delaying your move-in date.
Keep reading to learn what you should have in hand to avoid any delays with your purchase closing.
Proving Your Identification
Most importantly, you will need photo identification to prove that you are the person that is purchasing the home. This might seem like a silly step since the loan officer and/or attorney likely knows you already, but the closing agent doesn’t know you. Plus, the documents you sign will need to be notarized, which means the notary will need proper identification in order to notarize your documents.
Proof of Homeowner’s Insurance
If you are using any type of financing to buy the home, you’ll need proof of homeowner’s insurance. Not only do you need the Declaration’s Page that shows your type and amount of coverage, but you need a paid-in-full receipt. You must pay for the first 12 months of coverage up front in order for the title company to close your loan for you.
If the home is located in a flood zone, you’ll also need proof of flood insurance as well.
A Copy of Your Trust
If you have a revocable living trust and you want to make your home a part of that trust, you’ll need to bring a copy of it to the closing. This will affect how you sign the closing documents, so a copy of the trust is very important. It lets the title company know if the trustee can take possession of the home and how the documents should be signed.
A Copy of Your Separation Agreement
If you are currently separated, but not yet divorced, you’ll need a copy of your separation agreement. This could affect the purchase or how you take title to the property. The closing agent will review the separation agreement to make sure that you are able to take possession of the home on your own and that there aren’t any legally barring issues that could prevent you from taking ownership.
The Final Purchase Contract
It’s always a good idea to have a copy of the purchase contract in hand. This way you can compare the documents you sign to the purchase contract. You’ll know for a fact that everything is as you agreed and that nothing was switched without your knowledge. If you try to do this without the purchase contract, you may mistakenly overlook something or not remember an important detail just because the closing process can be overwhelming.
A Certified Check
Of course, no closing is complete without money. Unfortunately, you can’t bring cash to a closing. You also cannot bring a personal check. The money must be in the form of a cashier’s check or money order. This way the title company knows the funds are good.
In some cases, you may need to wire the funds. It’s important that you check with the closing agent a few days before the closing to see what will be expected. If they won’t accept any funds in person, you’ll need at least two days’ notice to get the wire to the closing agent on time.
The closing agent should be able to tell you within 3 business days of your closing exactly how much money you need to bring to the closing. This way you can have the funds prepared ahead of time to avoid any type of delay in the closing.
It’s a good idea to talk with your loan officer and/or closing agent long before the closing occurs to make sure you have everything they require. If you show up to the closing without the necessary documents, you may delay the closing process for a few days. Stay prepared and know well ahead of time what you need in order to get your loan closed on time.