Time To Close On A Home? Here's Everything You Need To Bring As A Buyer

Let's close the deal right now. Your old house has been sold, and an agreement has been reached. You have arrived at your destination after many people's long and difficult journeys.

Your loan officer or agent should provide you with a comprehensive list of everything you need to bring to the closing session well before the closing date. Here are some examples of items that frequently appear on such a list.

1. Legal Representation or Representation by Your Agent

Having an agent by your side who understands the home-buying process is critical. This is especially true for those purchasing their first home. Knowing the agent you're working with is always looking out for your best interests, and monitoring the situation is comforting.

Talk to a mortgage expert at your local First Bank branch if you haven't already found someone knowledgeable and trustworthy.

2. A Photo ID

You'll need official documents to prove that you are who you say you are before you can close on a house. You will be asked to sign a few papers, which must be witnessed by a notary public. Any legal photo ID, such as a passport or a driver's license, will suffice. A state-issued ID card will suffice if you don't have either.

Some lenders are also requesting a second form of identification from borrowers. Even if your agent or lawyer advises you not to, you should always carry a copy of your legal documents.

3. The Purchase Agreement in Writing

There will be a lot to expect on the event's final day, but it will also be very exciting. It may be almost impossible to keep everything straight in your head.

Please bring a copy of the purchase agreement to the closing to ensure that it corresponds with the final documents. Rather than taking a chance by signing papers that may or may not match what was previously agreed upon, it is preferable to be extra cautious and protect one's interests.

4. A copy of the Property's Insurance Policy

Most lenders require evidence of homeowner's insurance before issuing a mortgage. It's possible that having multiple types of insurance is required in some places. The amount of insurance must be at least as much as the remaining balance on the mortgage or the cost of rebuilding the home, whichever is greater.

You must provide proof that you have homeowners insurance and paid the full annual premium.

5. A Cashier's Check or a Bank-certified Check

Settlement statements should be reviewed at least one day before closing to ensure that nothing is changed at the last minute. It will detail every cost associated with purchasing and closing a home. You should include not only your down payment but also any other closing costs.

Real estate transaction costs are typically between 3% and 5% of the home's purchase price, less any good faith deposit you may have already paid to the seller. Check that you've already transferred all the funds required for the closing.

Bring cash or a check to the correct amount signed by a bank official. The personal checking account and the way checks are processed are both having issues.

If you are thinking about the home buying and closing process, contact us today and we are happy to answer any questions you may have. 

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