Helpful Tips to Closing on a House of Your Dreams!
For many homebuyers, the anticipation of closing day can be one of the most exciting steps of the homebuying process. This is when you finalize everything and receive the keys to your new home. There are a couple of things to keep in mind on your closing day that’ll make it easier.
At DeLuca Homes, we want to make sure every step of the home-buying process is simple and stress-free. For more than 50 years, we’ve helped thousands of people like you through the buying and building process by listening carefully to their desires and needs and providing guidance along the way. We’re happy to continue that guidance by providing this article as a resource of information about closing on a house.
Steps to Closing on a Home
1. Understand the Closing Documents
A big part of the closing process is reviewing and signing paperwork. Make sure to keep tabs on all of your closing documents and their due dates to make sure you’re prepared and send everything to your lender on time. You should make sure to thoroughly read and understand the documents, too. Pay attention to things like the accuracy of the interest rate and any other previously agreed terms.
A real estate attorney or a real estate agent is a great resource to use if you don’t understand something. Your real estate attorney or an escrow company will also be helpful when reviewing the title documents. Along with the title, the closing disclosure, seller’s disclosure, and loan application are standard closing documents to look out for. Our dedicated team of experts at DeLuca Homes is also available to answer any questions.
2. Look for Insurance
Throughout the DeLuca Homes building process, we make sure everything is built to the highest standard of quality so your home is built to last. However, obtaining insurance is an important part of closing on a home in case of future damages. Most lenders will require you to have proof of homeowners insurance for your new home right before or during closing. They may also need you to have a certain amount to cover the replacement cost of the home or the amount of the loan. We recommend including protection for the contents of your home as well. Lastly, be sure to confirm how your lender should be named on the insurance policy and make sure the insurance commences on the closing date.
3. Complete a Home Inspection/Final Walk-Through
At DeLuca Homes, we inspect every phase of construction to ensure that your home meets the highest quality standards. We invite you to see the quality for yourself through a home inspection and final walk-through. The inspection is an important step that includes checking the home for any problems or issues that need to be addressed. Our construction manager will explain how all the features and appliances work and record any items you believe still need attention. During the final walk-through, you’re invited back to re-inspect the home to confirm any issues were resolved. It’s our pleasure to address any concerns and make sure you’re as confident as possible on closing day.
4. Prepare Any Necessary Documents
It’s Closing Day! It’s time to review/sign the remaining documents and seal the deal. With DeLuca, you’ll get another opportunity to inspect the home (we’re that thorough!) and will receive a 30-day notice from your Settlement Coordinator of the place, date, and time. Before you arrive, there are a few items you’ll want to bring:
Photo Identification – a driver’s license, passport, or government-issued photo ID
Final Payments/Closing Costs – confirm with the escrow company how these should be paid
Proof of Homeowners Insurance
Closing Disclosure – compare this with the final paperwork
Home Inspection Reports
If there are any other documents needed, we’ll be sure to discuss them with you and your lender before closing so everything runs smoothly.
5. Celebrate!
Congratulations! Whether it’s your first time buying or you’ve purchased before, closing on a new home is a huge accomplishment that should be celebrated. Take a moment to breathe and enjoy feeling the key click as you unlock the door to your new home. Break out the champagne and cheers to closing!
What are Closing Costs on a House?
Paying closing costs on a house will be one of the final things you do. These are the various processing fees paid to your lender for creating your loan. Closing costs can vary by lender, the type of loan, and where you live. They’re mostly paid by the buyer, but we’ll do what we can to help you into your dream home, so keep an eye out for DeLuca’s special financing offers. Prior to your closing meeting, you’ll receive a closing disclosure document that entails the closing costs for your specific loan. Here are just a few common items you might find on a closing disclosure.
Application Fee
This is to process your loan request. It’s sometimes charged as a separate fee or a deposit to use toward other closing costs later.
Attorney Fees
Your real estate attorney fee covers the cost for them to coordinate your closing and draw up the paperwork for your title.
Credit Reporting Fee
This fee covers the cost of pulling your credit report and looking at your credit score.
Loan Origination Fee
In exchange for underwriting and creating your loan paperwork, this fee goes to your lender. It may be about 1% of your loan’s value.
Mortgage Insurance
This fee will vary depending on the type of loan you take and the percentage of your down payment.
Property Tax
Property tax fees will be paid to your local government for public services including, public schools, roads, fire departments, etc. The amount depends on your home’s value and where you live.
Underwriting Fee
An underwriting fee goes to your lender in order to verify your loan paperwork.
Connect with DeLuca Homes Today For More Info on Our Homes!
As a builder with decades of experience, you can trust that we’ll be there to guide you every step of the way during your home-buying process. This experience along with our dedicated team allows us to build exceptional homes throughout Bucks County. Each one is as unique as its owner and includes energy-efficient features and materials. Browse our floor plans or available homes and let us know if you have any questions. You can connect with us online for more information. We look forward to helping you close on your new DeLuca home.