What to Do Before Closing on a Home: Including FREE Checklist
Buying a home is one of life’s biggest decisions, and the final steps in the home closing process can feel overwhelming, especially for first-time homebuyers! The days and weeks leading up to closing are filled with seemingly endless tasks and final checks to make sure everything is in place for a smooth transition. We’ve bought three houses in the last five years (and are about to house-hunt for our fourth), so we’ve got a ton of insights on what to do before closing on a home.
This guide breaks down each step of your home closing checklist, providing pre-closing tips, checklists for first-time homebuyers, and answers to common questions. Let us help make sure you’re fully prepared for the big day.
Note: Scroll to the end for a free printable checklist with all of this information!
What to do Before Closing on a Home
Review Your Home Closing Checklist
Before signing the million documents you sign when buying, make a home closing checklist. This will keep you organized and focused, covering everything from the mortgage closing process to double-checking your closing cost estimates. Here are some of the key steps:
- Finalize your financing and mortgage paperwork
- Verify your homeowners insurance policy is in place
- Schedule your final walkthrough before closing
- Review all closing documents and costs with your agent or attorney
An appraisal is also a good idea to make sure the home value aligns with the purchasing price (and if you’re financing with a bank it’s almost always a requirement).
Complete the Pre-Closing Home Inspection
A pre-closing home inspection is essential for uncovering any last-minute issues that might have popped up between your full inspection and the closing date, and it’s usually done just a few days before closing. If you haven’t done a full walk-through yet, this is your opportunity to assess the home’s condition thoroughly. Even if you’ve already conducted an initial inspection, a final inspection is important to ensure nothing has changed since your offer was accepted.
Home Inspection Before Closing: What to Look For
- Check for any new damage or repairs that were missed, or that might have been hidden behind staging furniture
- Test major appliances, plumbing, and electrical systems
- Verify any agreed-upon repairs were completed
This inspection step is crucial and can give you leverage if any last-minute repairs are needed.
And when you’re preparing your house to sell, follow the essential checklist for sellers.
Gather All Necessary Paperwork
Closing day requires a lot of paperwork. Make sure you have copies of all critical documents from the home buying process, including mortgage approval paperwork and records from your home appraisal and inspections.
Some key documents to make sure you’ve got:
- Loan approval documents
- Insurance policy
- Home appraisal report
- Home title search report
Most closing/title agents will have all this prepped for you in a packet, but making sure everything’s accounted for there is a great idea to streamline your paperwork and reduce stress!
Double-Check Closing Costs and Financials
Understanding and reviewing your closing cost estimates before the final signing is critical. This is often one of the largest out-of-pocket expenses for buyers (and one a lot of first-time home buyers don’t factor in), so confirm all the costs with your lender or real estate attorney.
Common Closing Costs to Prepare For:
- Loan origination fees
- Appraisal and inspection fees
- Title insurance
- Property taxes
Being aware of your closing costs ahead of time will prevent any surprises on the big day.
Secure Homeowners Insurance
Having homeowners insurance in place before closing is typically a lender requirement. This protects your new investment and offers peace of mind. Work with your insurance provider to select the best coverage for your needs, and have your policy ready for closing day.
Verify the Home Title Search
Your lender or title company usually conducts a home title search to confirm that the seller has the right to sell the property and that there are no outstanding liens. While this is largely handled by professionals, it’s wise to review the title report to make sure there are no issues that could delay closing. It’s also a good idea to check your county’s records and make sure there are no outstanding permits that need to be closed out, too.
Prepare for Moving Day and the Transition
Now that you’re nearing the finish line, it’s time to prepare for your move! Arrange for movers, set up utilities to start on closing day, and plan for any home improvements you want to make before moving in. Once the home is officially yours, you’ll want to start enjoying it without additional stress!
FAQ: Common Questions Before Closing on a Home
Q: What is a pre-closing checklist for homebuyers?
A pre-closing checklist for homebuyers includes all the necessary steps to take before closing on a house. This often includes reviewing financing, confirming homeowners insurance, completing a final walkthrough, and gathering all required paperwork.
Q: What should I look for in the final walkthrough before closing?
During the final walkthrough, check for any new damage, verify repairs, test appliances, and make sure all included fixtures are still present. This is your chance to ensure the home is in the condition you expect before signing.
Q: Why is a pre-closing home inspection important?
A pre-closing inspection uncovers any last-minute issues with the property. It’s a chance to ensure all repairs are completed and that no new problems have arisen since your initial offer.
Q: How should I prepare for the closing costs?
Review your lender’s closing cost estimate to understand each charge. Common costs include loan origination fees, appraisal and inspection fees, title insurance, and property taxes. Ensuring you have funds set aside will prevent any surprises at closing.
Q: What are some first-time homebuyer tips for closing day?
First-time buyers should arrive prepared with all necessary paperwork, verify that homeowners insurance is active, confirm that they’ve reviewed the title search, and go over closing costs with their lender. It’s also helpful to double-check your loan terms and ask questions if anything is unclear.
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