7 Things to Bring to Your Closing
You decided to list your home on the market, and you accepted an offer. Or maybe you’ve been searching for your dream home, and you’ve finally found it. Whether you’re a buyer or seller, the final step in your real estate transaction comes on closing day.
By closing day, you’ve already experienced offers and counteroffers. You’ve completed an appraisal and home inspection. Now, all that’s left is to pay, sign a couple of dotted lines, and exchange the keys, right?
There’s a little more to it than that. Finalizing the sale or purchase of a home involves more than signing a couple of documents, and closing can take a long time. By coming to closing day prepared, you can make the process proceed more smoothly and make this momentous occasion a positive experience.
Here are seven things you should bring as a buyer or seller to your closing appointment.
1. Your Agent or Legal Representation
Bring your real estate agent and, if applicable, a lawyer with you to closing. Unless you’re a seasoned real estate investor, there’s a good chance you'll only buy and sell a home a few times in your life. It helps to have an experienced agent or legal representative at your side as you go through all of the steps.
If you are selling or buying a home for the first time, ask your agent to talk you through what to expect once you arrive. Knowing what to expect will give you peace of mind as you take this final, exciting step.
2. Government-Issued Identification
During closing, you will be asked to sign a number of legal documents as the buyer and seller. In addition to bringing a black or blue ink pen, which is a requirement for most official documents, you'll also need to have government-issued photo identification.
Closing documents require a signature from a notary, which is usually provided by the agents handling the transaction, and notary-signed documents require photo identification for all signers.
3. Copy of Your Contract and Purchase Agreement
Buying and selling a home is one of the biggest financial transactions most people will make in their lifetimes. You want to make sure you're following through with any commitments you made and that you're getting what was promised so you don't end up regretting your home purchase.
Therefore, both parties should bring a copy of their contract and purchase agreement. The buyer’s and seller’s agents will likely have copies on hand, but you’ll feel better if you have your own copy of the original accepted document to use as a reference.
Don’t hesitate to do a side-by-side comparison of your copy and the final agreement to make sure everything aligns to your satisfaction.
4. Documentation of Requested Updates and Repairs
As the seller, you should bring documentation showing that any requested updates or repairs from the home inspection have been satisfactorily completed. If you hired contractors to do the work, bring copies of paid invoices showing that the work was done.
If you're the buyer, have the list of agreed upon repairs handy so you can check that they were made. There are so many moving parts in a home sale, it helps to have a list so you don’t forget anything along the way.
5. Certified Check or Proof of Financial Transfer
A home sale isn’t truly complete until the buyer hands a check to the seller and signs the final paperwork transferring ownership. If you’re buying a home with cash, bring a certified check or proof of a wire transfer depositing funds into the appropriate account.
Most buyers, however, purchase homes with a down payment, then finance the rest with a home mortgage. Your mortgage lender may provide a written check, but it’s more likely they’ll make a wire transfer on your behalf. Ask your lender to provide proof of the transfer and bring it to your closing appointment, along with your down payment check or proof of transfer.
Sellers typically pay more in closing costs because they're responsible for both real estate agent commissions. However, how much you pay in closing costs varies, and you can usually get an estimate by talking with your agent or using a free online calculator.
Some closing expenses will automatically be deducted as part of the transaction, so you won’t need to worry about paying for them. It’s still a good idea to bring along your checkbook in case you have to make any payments to third parties, such as a check to pay for the transfer of title paperwork.
6. Proof of Homeowners Insurance
If you're buying your new home with a mortgage or some other form of financial assistance, bring proof of your homeowners insurance policy. Most lenders for home loans require borrowers to have homeowners insurance as part of the agreement. This ensures that their assets are protected while they are financially liable for the property.
Don’t panic if your closing date is near and you haven't received a copy of your policy or your policy cards. Many companies have gone paperless, and your proof of insurance may be available digitally.
Ask your agent if digital proof is acceptable, but plan to print a copy to bring along, just in case. When in doubt, contact your insurance agent to make sure you have the proper paperwork so you don’t run into any unexpected obstacles while signing your closing documents.
7. All Copies of Keys, Remotes, and Warranty
As the seller, collect copies of keys and remote controls related to your property and bring them to the closing appointment. This includes keys and remote fobs for all doors in the home, the garage, mailbox, and any homeowners association-related amenities, such as the swimming pool or clubhouse.
If any appliances in the home are still under warranty, you should bring those agreements as well. You won’t need them, and they could save the future homeowner a lot of trouble in the future.
Once all parties sign the closing paperwork, ownership of the property transfers from the seller to the buyer. By keeping any of these items, you are violating another person’s legal property rights, even if unintentionally.
