Beginner Guide to Buying a Home series – Week 11

This step-by-step series will take you through the entire home-buying process — from finding a buyer’s agent to settlement day, and all the details in between. Every first-time buyer will find this information-packed series easy to follow and understand. Make sure to tune in for the next couple of weeks as we wrap up this series!

As you get closer to closing day and getting the keys to your new home, there are a few things you can do to make sure the path remains smooth. Planning can ensure that there is no last-minute scramble.

The following is a breakdown of the things you need to plan for or put in place in the days approaching the closing.

Pre-closing to do list:

Once you have your closing date:

• Connect your utilities—
  • Gas and electric – notify the company that services your new home and open an account if the company is different than your current company. If it is the same company servicing your current home, you can probably add the new address to your account and transfer the service to your name on the closing date.
  • Oil company – If your home uses heating oil arrange with a local company for delivery service, if the current owner has a service contract with a company you can continue with them or research and find a company that works better for you. Oil companies can set up automated delivery and some will even allow you to go on a fixed payment plan, so your bills are consistent year-round rather than having very high bills in the winter and minimal bills in the summer.
  • Water company – if you have municipal water supply verify how it is billed, sometimes it is separate from your taxes, and make sure the transfer to your name takes place. This is usually handled by the lawyers as there is normally a final water reading before the closing.
  • Internet service – schedule this as soon as you have a closing date to ensure your service is set up before your move in date. If you are not moving right away, you will need to decide if you need service when you close or just before you move.
  • Garbage collection – Again depending on your town you will need to know if this is a municipal service covered by your property taxes or if private garbage companies are used to collect trash. You will need know if special trash cans are required and if they are provided by the town/garbage company. If it is a private company, you will need to open an account. Find out about recycling and if specific containers need to be used. Depending on the time of year you may need to know about leaf collection.
  • Condo and COOP – if water and heat are not included in your HOA/maintenance fees you will need to set up these services.

Make sure all the accounts are set up to start on settlement date. The exception is your cable/internet service, depending on when you are moving you may want to delay that to closer to your move in date.

• Homeowner insurance company—Make sure you have your homeowners/hazard insurance starting on the date of settlement as well.  Also, your lender will require a copy of the declarations page and will need to be named on the policy, they will give you the correct wording for this.  You pay for the first full year.
• Change of Address — Put together a list of folks that need to be notified of your change of address when you move such as Department of motor vehicles, any automated food or product delivery services, credit card companies, car insurance, work, mail prescription services, etc. Do you need to get prescriptions transferred to a local pharmacy? School information if you have children. Your pets chip information if relevant.

 Get Prepared for Closing Day

When the big day arrives, you want to make sure you have everything you need, including any necessary funds. Don’t be rushing around at the last minute, so read over the list below.

• What to bring to settlement— Bring your driver’s license or other government issued id. In addition, your lawyer should let you know the amount of the certified check(s) you need to bring to the closing and who they should be made out to.   You should also bring your check book as there are sometimes lass minute items that need to be taken care of. 

If you are moving funds around, please be aware that banks typically put at least a 3 day hold on large transfers.  If you’d prefer to wire your funds directly to the lawyers holding account instead of bringing a certified check,  reach ot to your lawyer for wiring instructions. 

Be aware:  Due to unfortunate wire fraud recently, only access wire instructions by email IF the lawyer has also confirmed them with you by phone.  Too many buyers have lost their down payment, so do not wire any funds without verbal confirmation of the account number and wire instructions from the title company.  You should call back and verify any emails or phone calls to you changing wiring information.

• Obtain and review a copy of the Closing Disclosure form (it replaced the HUD-1 Settlement Statement). Your lender should send you a Closing Disclosure at least three business days before closing. This form lists all final terms of the loan you’ve selected, final closing costs, and the details of who pays and who receives money at closing.  You should verify your information is correct, social security number, date of birth etc. Mistakes have been known to happen.  Once you receive it, let me know if you have questions and I will be happy to review it to make sure you understand everything.  But be aware you must sign and return it ASAP, or the closing could be delayed.
• Final walk-through— Mark your calendar for the time to meet at your new home for the walk-through. This is usually scheduled just prior to the actual closing, a day or two before. This is your opportunity to inspect the home and its condition. It also enables you to confirm that any items that you and the seller have agreed to remain or convey are there, and that everything is in the same condition it was at the time of the inspections.  Some inspection companies will do the final walk thru with you as part of their services.

This is an exciting time since you’re almost in your new home! You don’t want anything to be delayed or forgotten right now so double check that all tasks have been completed. Put a big red check mark next to each item when done!

I hope you now have the confidence and knowledge to buy a home!

Just remember, throughout this part of the process you are not alone—I’ll be in touch every step of the way making sure everything goes smoothly and you know what to do when.

Next week is the final article in the series!  It came too fast, so I’m also sending you a bonus article about how to maintain your home after you move in.  Stay tuned for next week’s article — How to Make Your Settlement/closing day a Success.