5 Things You Must Do Before Closing On Your New Home

Whether you’re buying your first house or your tenth, check out these five things every buyer should do before closing.

Here’s a short list of five things you must do before closing on your new home. Your Aspen REALTOR® will help ensure you get everything done – but this list will give you a head start.

Handle all your contingencies
Make sure the title is clear
Double-check your closing disclosure
Conduct your final walk-through
Bring everything you need to closing

Here’s a closer look at each.

#1. Handle All Your Contingencies

Contingencies are conditions that you or the seller must meet before you can close on the home and get your keys. You have to handle all of them before closing day – and one of the most important contingencies that your REALTOR will build into your purchase contract revolves around a home inspection.
It’s always a good idea to have a home inspected before you sign the dotted line that makes it yours. That way, if the house has any issues that will affect your use and enjoyment of it, you can negotiate with the seller to get them fixed – or you can ask the seller to lower the price. In extreme cases, you may even decide to walk away from the deal.
Related: Common closing costs for cash buyers

#2. Make Sure the Title is Clear

You’ll want to work with a title agency to make sure that nobody else owns the home you’re about to buy. Although it may seem far-fetched, there have been hundreds of cases where a presumed-dead relative swoops in and claims ownership in a home after someone else has purchased it. Working with a title agency helps ensure that nobody else has a claim to the house – and purchasing title insurance (a buyer’s policy, not a lender’s policy) is a good way to protect yourself if your ownership comes into question.

#3. Double-Check Your Closing Disclosure

If you’re using a mortgage loan to buy a house, you’ll get a closing disclosure statement. It’s also known as a HUD-1 settlement statement, and it outlines:

The dollar amount of your mortgage payments
The loan’s terms, such as the interest rate and duration of the loan
Additional fees you’ll pay in closing costs, which can total between 2 and 7 percent of the home’s purchase price

You and your REALTOR can compare the closing disclosure to the loan estimate your lender gave you when you first applied for the loan. If you see anything that doesn’t match, you can take it up with your lender – and some things are negotiable, which means you may be able to save a little cash at closing.
Related: Why “days on market” matters in a home listing

#4. Conduct Your Final Walk-Through

Before you sign the final paperwork, you’ll have the opportunity to walk through the home one last time. Don’t miss this opportunity – you can use it to ensure that the seller has made all the repairs you’ve requested, that the home is clean, and that the house is in the condition you expected it to be in when you agreed to buy it.

#5. Bring Everything You Need to Closing

Make sure you bring all the necessary documents to closing, including:

Proof that you’ve purchased homeowners insurance
Home inspection reports
A copy of your purchase contract
Paperwork your lender requires to complete your loan
A government-issued photo ID

Are You Selling or Buying a Home in Aspen?

If you’re ready to sell your home in Aspen, Woody Creek, Basalt, Carbondale or Snowmass, we may be able to help you.
Get in touch with us right now to find out how much your home is worth – and discover how we’ll be able to help you sell it quickly and for top dollar.
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