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Home Buying Process: Pre-Settlement Checklist for Home Buyers
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Settlement (also referred to as closing) is a critical part of the home buying process.
During settlement, ownership of the home gets transferred from the seller to the buyer. This involves a lot of paperwork, a lot of signatures, and usually a lot of questions.
As a home buyer, you can prepare for settlement by understanding what you need to do before the actual day of settlement. This will make the entire home buying process smoother and less stressful.
Some of the items on this list may seem obvious, but I've included them anyway to make the list as complete as possible. Keep in mind that settlement laws and requirements may vary from state to state.
Pre-Settlement Checklist:
Loan Approval - This is first and foremost,
because you can't proceed toward settlement /
closing until you get approved for the loan. Once
you're approved for the loan, the settlement process
is in motion.
Truth-in-Lending Statement - Shortly after
applying for the loan (usually within three business
days), the lender will give you a truth-in-lending
statement. This statement shows the total estimated
cost of the loan, including fees, interest rates and
payment terms.
Set the Date - The time and place of
settlement will usually be agreed upon between the
lender, the settlement company, and the buyer and
seller.
Transfer Utilities - Call to transfer all
applicable utilities (gas, electric, etc.) to your
name, effective on the settlement date.
Hazard Insurance - Most lenders will require
hazard and liability insurance, at least up to the
loan amount. You need this to satisfy their
requirements, but you should also choose a policy
that protects your investment and give you peace of
mind.
Final Walk-Through - A day or two before
settlement, you will conduct a final walk-through of
the house. This is your last chance to view the
property before taking ownership of it. Make sure
everything is as you remember it (no new damages,
all conveyed items present, etc.). Also, if you made
the contract contingent upon certain repairs (based
on the home inspection), make sure those repairs
have been completed.
Settlement Statement - At least one business
day before settlement, you should receive a
settlement statement (also referred to as a HUD-1
statement). This document will list all the costs
you're required to pay at settlement. Review it
carefully. If you find errors or items you don't
understand, bring it up with your real estate agent,
attorney or settlement agent. Don't let your
questions go unanswered! Certified Check - In most cases, you will need to bring a certified check with you to settlement to cover all the closing costs. The amount of this check will be based on the settlement statement. Be sure to bring a photo ID with you as well. Understanding the settlement process will help ensure a smoother home buying process. Be proactive about the items on this list. Don't just wait for them to happen -- make them happen.
* Copyright 2006, Brandon Cornett. You may republish this article if you keep the byline and author's note, and also leave the hyperlinks active.
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Article Source: http://EzineArticles.com/?expert=Brandon_Cornett
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