Closing day for a home buying family represents in many ways, a new beginning. It can also be extremely stressful.
Here are 10 helpful hints, to make your closing day a success story.
1. Know how much money you will need to bring in on closing. The balance owing will not only include what is stated in the purchase agreement, but will also include land transfer tax, legal fees, disbursements and any closing adjustments. Have this discussion with your lawyer well in advance of closing to ensure that you have sufficient funds available. If you are using funds from your RRSP to complete the purchase, make sure you start the process at least one month before closing so that the funds will be available.
2. Make sure your lender has completed their appraisal well in advance. If their appraisal indicates that your home is not worth as much as you paid for it, then they may advance a lesser amount than you are expecting on closing.
3. Arrange insurance coverage well in advance. Your insurer will do a separate inspection before agreeing to provide insurance. If the home has out-dated wiring, it may result in a much higher premium.
4. Most closings take place later in the day. Do not plan to arrive at the home earlier or else you may end up paying more to your movers.
5. If you are selling and buying, consider buying your home a few days before your sale. Your bank should be able to provide you with a bridge loan to complete your purchase, so you only pay interest for a few days, until you complete the sale of your existing home. This will give you time to clean, paint and prepare your new home before moving in. Those who attempt to sell and buy on the same date invariably have damages done to their home and their furniture as a result of being rushed with their moves.
6. If your seller is going to remove any chandeliers prior to closing, make sure that they replace any light fixture with a cheaper version, to make sure you have light in the home when you move in. Bring extra light bulbs as some sellers have been known to remove all lbulbs.
7. Arrange a pre-closing inspection of all appliances, heating, plumbing and electrical systems as close as possible to closing, to make sure that everything the seller promised will be given to you on closing. Try and make sure that the seller removes all junk from the basement and garage prior to your inspection, so that nothing is hidden from view.
8. Inform all utility, newspaper, cable, phone, alarm system and internet suppliers of your upcoming move. You may have to provide security deposits for hydro or gas accounts at your new home before service is provided. After closing, inform any credit card companies, doctors’ offices, and government departments such as for example your driver’s license. Consider preparing and sending “just moved “cards, with all of your new information, for your friends, relatives and service providers.
9. Check all appliances and home systems as soon as you move in. Most agreements say that the seller warrants that everything will be working on closing, not one week after closing. If there are any problems, you need to notify the seller immediately after you move in, to be able to bring a claim later for repairs.
10. Consider obtaining after sale warranty protection on your appliances and home systems in advance. Some lenders provide this as an incentive and there are other companies such as Direct Energy that provide protection on the heating, air-conditioning, plumbing and electrical systems as well as your major appliances. This can give you additional peace of mind should anything break down in the months following closing.
By being properly prepared before, during and immediately after you move into your new home, you can both protect against many problems from occurring and making your home purchase a wonderful experience for you and your family.