Closing the Deal

You did all your homework, and aligned with all the right professionals. You found the home of your dreams, made an offer and sweated out the back and forth negotiations. And now, finally - finally! - your offer has been accepted. Congrats! But through your jubilation, keep in mind there are still potential pitfalls related to the closing process. Highlights of this process include:

The closing contract

Once your offer has been accepted, a legally binding agreement (yes, another one!) is drawn up. It outlines details of the transaction (sale price, property description, contingencies, possession and closing dates), and obligates you to pay for and take ownership of the home once all contingencies are met.

Paperwork, paperwork, paperwork

The closing process can bring a new round of stress with all the paperwork to review and sign. Double check everything, and consult with your lawyer before placing your name on any dotted line.

Confirm all terms and contingencies

Contingencies need to be satisfied before the closing can proceed. Requirements will include a home inspection, and a finalized loan agreement for the buyer. Other terms may specify what sort of furnishings are left for the incoming buyer, and how many days the seller has to move once the closing is finalized. Contingencies are generally framed within a 10-14 day window, while financing contingencies have a 30-day deadline.

Secure mortgage funding

One of the biggest closing hitches is the buyer's inability to secure funding. Follow up with your bank and mortgage broker to ensure the loan is still available at the terms you were quoted. If you have a real estate lawyer - and you should - confirm the details with the title company and the lender.

Final checklist

You'll receive closing costs from your lender. Make arrangements for utility service, title and homeowner's insurance, and your first mortgage payment. Confirm with your lawyer that escrow payments have been lined up. Both parties will also receive a settlement sheet (or closing statement), which details all financial aspects of the sale.

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