The closing date on a house purchase is an exciting time for any buyer. Yet it can also lead to a lot of aggravation and stress if you are not properly prepared. Most buyers have a lot of questions about what to do on closing day, such as; What is a closing date on a house? What happens on closing day of house? Can you move into a house before closing day?
By being properly prepared before closing on a house, during and immediately after closing on a house and before you move into your new home, you can both protect against many problems from occurring and making your home purchase a wonderful experience for you and your family. Here are some house closing tips to make this experience a positive one:
1) Money: Know in advance how much money you will need to have on closing day on a house. Buyers need to understand the balance owing on house closing date will not only include what is stated in their purchase agreement, but will also include land transfer tax, legal fees and disbursements, and any closing date adjustments. Have this discussion with your lawyer well in advance of closing date to ensure that you have sufficient funds available. If you are using funds from your RRSP to complete the purchase, make sure you start the process at least one month before closing on a house so that the funds will be available.
2) Appraisal: Make sure your lender has completed their appraisal well in advance of house closing date on a house. If their appraisal indicates that your home is not worth as much as you paid for it, then they may advance a lesser amount than you are expecting on closing date.
3) Insurance: Arrange home closing insurance (or mortgage insurance) coverage well in advance. Your insurance company will have to conduct a separate inspection on your home before agreeing to provide home closing insurance. If the home has outdated wiring, it may result in a much higher insurance premium. Make sure you have completed this well before closing on a house.
4) Moving date: The agreement provides that you may not be given possession of the property until 6 pm. Most closings take place later in the day. Do not plan to arrive at the home earlier or else you may end up paying more to your movers. You may want to consider moving in a few days after closing on a house and you are given possession, to give you time to clean and paint your new home.
5) Overlap: If you are selling your home and buying at the same time, you should consider buying your home a few days before your sale. Your bank should be able to provide you with a bridge loan to complete your purchase so you only pay interest for a few days, until you complete the sale of your existing home. This permits you to still prepare your new home before moving in. Those who attempt to sell and buy on the same date invariably have damages done to their home and their furniture as a result of being rushed with their moves.
6) Let there be light: If your seller is going to remove any chandeliers prior to closing date, make sure that they replace any light fixture with a cheaper version, to make sure you have light in the home when you move in. Bring extra light bulbs with you as some sellers have been known to remove all light bulbs.
7) Inspect: Arrange a pre house closing inspection of all appliances, heating, plumbing and electrical systems as close as possible to closing date, to make sure that everything the seller promised will be given to you on real estate closing date on a house. Try and make sure that the seller removes all junk from the basement and garage prior to your inspection, so that nothing is hidden from view.
8) Announce the move: Inform all utility, newspaper, cable, phone, alarm system and internet suppliers of your upcoming move, in advance of closing day. You may have to provide security deposits for hydro or gas accounts at your new home before service is provided. After closing on a house, inform any credit card companies, doctors’ offices, and government departments such as for example your driver’s license. Consider preparing and sending “just moved “cards, with all of your new information, for your friends, relatives and service providers.
9) Appliance check: Check all appliances and home systems as soon as you move in. Most agreements say that the seller warrants that everything will be working on real estate closing date, not one week after closing on a house. If there are any problems, you need to notify the seller immediately after you move in, to be able to bring a claim later for repairs.
10) Get a warranties: Consider obtaining after sale warranty protection on your appliances and home systems in advance. Some lenders provide this as an incentive and there are other companies such as Direct Energy that provide protection on the heating, air-conditioning, plumbing and electrical systems as well as your major appliances. This can give you additional peace of mind should anything break down in the months after closing on a house.
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