Closing

During: Buying Process Overview: Closing

Closing is all about closing on the purchase and sale. It is the sixth step in the Buying Process Overview.

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The Closing process is shown visually below.

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Complete the "Closing" checklist:

https://learntoberich.com/closing/

Mark complete when done.

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Watch the recording of the live presentation of "Closing Real Estate Deals" available on:

https://learntoberich.com/closing-real-estate-deals/

Mark this task as complete once you've watched it.

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Read "Closing: Prepare For Closing":

https://learntoberich.com/prepare-for-closing/

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Read "Closing: Closing Real Estate":

https://learntoberich.com/closing-real-estate/

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Read "Closing: Closing Financing":

https://learntoberich.com/closing-financing/

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Read "Closing: Immediately After":

https://learntoberich.com/immediately-after/

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The Closing stage consists of the following steps with brief explanations of what is included in each step:

  1. Prepare For Closing – The things you should and must do to prepare for attending closing.
  2. Closing “Real Estate” – The actual closing of the real estate portion of your purchase.
  3. Closing “Financing” – The actual closing of the loan portion of your purchase.
  4. Immediately After – The things you should and must do immediately after attending closing.

Closing: Prepare For Closing

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Verify with the Title Insurance Company whether they will accept a cashier's check for closing or if you will be required to wire funds for closing.

IMPORTANT NOTE: If you are wiring money to the Title Insurance Company for Closing you should always get wiring instructions straight from them by calling them. Do NOT rely on emailed wiring instructions without verifying them by calling the Title Insurance Company or in person.

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Closing: Prepare For ClosingContract Deadline: Closing DateDown PaymentUltimate Nomad ChecklistWeek 12

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Some clients want to read, word-for-word, every document at Closing. If this is you, let us know as soon as possible and we can try to request a copy of the entire closing document package so you can read them in advance of Closing.

Then, at Closing, you can quickly compare them to the ones you've read to make sure they're the same ones and sign them.

Only about 1 in 50 clients do this so it is relatively uncommon.

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Closing: Prepare For ClosingContract Deadline: Closing DateDown PaymentUltimate Nomad ChecklistWeek 12

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Your Real Estate Broker should coordinate with your Lender and the Title Insurance Company to find out how much you'll need to bring to Closing.

Great Lenders will do this for their clients as well. Some don't.

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Closing: Prepare For ClosingContract Deadline: Closing DateDown PaymentUltimate Nomad ChecklistWeek 12

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Your Real Estate Broker should coordinate with you, the Seller, Seller's Real Estate Broker and Title Insurance Company to schedule a time for Closing.

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Closing: Prepare For ClosingContract Deadline: Closing DateDown PaymentUltimate Nomad ChecklistWeek 12

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Your Real Estate Broker should schedule a final walkthrough of the property just prior to Closing.

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Closing: Prepare For ClosingContract Deadline: Closing DateDown PaymentUltimate Nomad ChecklistWeek 12

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Your Real Estate Broker should review your Settlement Statement to check to make sure it matches the terms of your "Contract to Buy and Sell Real Estate" that was agreed to and, additionally, verify the pro-rations.

Your Real Estate Broker will not know the terms and agreed to expenses of your loan so you'll want to review those numbers with your Lender.

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Closing: Prepare For ClosingContract Deadline: Closing DateDown PaymentUltimate Nomad ChecklistWeek 12

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Your Real Estate Broker will not know the terms and agreed to expenses of your loan so you'll want to review those numbers with your Lender.

This is usually done a few days prior to Closing in an ideal world with a great Lender. Often, it happens the day before or even the day of Closing. Some less-than-great Lenders never do it unless you insist they go over it with you.

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Closing: Prepare For ClosingContract Deadline: Closing DateDown PaymentUltimate Nomad ChecklistWeek 12

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If you have a tenant in the property and you're buying the property with a lease in place, your Real Estate Broker should provide you with an "Assignment of Leases" that assign the rights of the current Landlord to you at Closing.

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Closing: Prepare For ClosingContract Deadline: Closing DateDown PaymentUltimate Nomad ChecklistWeek 12

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You'll want your full attention for the hour or so it takes for Closing, so please schedule a babysitter to watch your kids during your scheduled Closing time.

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Closing: Prepare For ClosingContract Deadline: Closing DateUltimate Nomad ChecklistWeek 12

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Walking through the property before Closing takes about 5 minutes, but you'll need time to travel there and the to Closing as well. Closing will take about an hour, so please schedule time off from work to accommodate your Closing time.

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Closing: Prepare For ClosingContract Deadline: Closing DateUltimate Nomad ChecklistWeek 12

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We recommend you walk through the property for about 5 minutes just prior to Closing to make sure that the property is still standing. This is NOT another inspection, but just a quick check to make sure all is how it should be.

We like to schedule this just prior to Closing so about 30 minutes or an hour before Closing depending on how far the property is from the location for Closing.

You'll usually meet your Real Estate Broker at the property for this final walkthrough prior to Closing then head directly over to Closing after.

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Closing: Prepare For ClosingContract Deadline: Closing DateUltimate Nomad ChecklistWeek 12

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Read "Closing: Prepare For Closing":

https://learntoberich.com/prepare-for-closing/

Mark this task as complete when done.

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Closing: Closing “Real Estate”

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Bring the following with you to Closing:

  • 2 forms of photo ID
  • Your checkbook - sometimes there will be a last minute adjustment to the closing numbers resulting in a small shortage that the Title Insurance Company will accept a personal check for
  • Your funds required for Closing (usually a certified check)

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Closing: Closing FinancingClosing: Closing Real EstateContract Deadline: Closing DateDown PaymentUltimate Nomad ChecklistWeek 13

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Attend the Closing.

Be sure to bring certified funds, two forms of ID and your checkbook.

Mark this task complete after Closing.

Closing: Closing FinancingClosing: Closing Real EstateContract Deadline: Closing DateDown PaymentUltimate Nomad ChecklistWeek 13

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Read "Closing: Closing Real Estate":

https://learntoberich.com/closing-real-estate/

Mark this task as complete when done.

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Closing: Closing “Financing”

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Bring the following with you to Closing:

  • 2 forms of photo ID
  • Your checkbook - sometimes there will be a last minute adjustment to the closing numbers resulting in a small shortage that the Title Insurance Company will accept a personal check for
  • Your funds required for Closing (usually a certified check)

Mark this task complete when done.

Closing: Closing FinancingClosing: Closing Real EstateContract Deadline: Closing DateDown PaymentUltimate Nomad ChecklistWeek 13

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Attend the Closing.

Be sure to bring certified funds, two forms of ID and your checkbook.

Mark this task complete after Closing.

Closing: Closing FinancingClosing: Closing Real EstateContract Deadline: Closing DateDown PaymentUltimate Nomad ChecklistWeek 13

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Read "Closing: Closing Financing":

https://learntoberich.com/closing-financing/

Mark this task as complete when done.

ClosingClosing: Closing FinancingUltimate Nomad ChecklistWeek 13

Closing: Closing Immediately After

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Instead of updating your mailing address each time you buy a property, you may want to consider updating as many of your accounts as possible to electronic statements to avoid having to update them each time you move.

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Change AddressClosing: Immediately AfterUltimate Nomad ChecklistWeek 13

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To avoid constantly updating your address as you move each year with Nomad, you may want to consider getting a post office box or private mailbox from a company like the UPS Store.

Then, have all your mail always go to that mailbox to avoid having to update them with each purchase/move.

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Change AddressClosing: Immediately AfterUltimate Nomad ChecklistWeek 13

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After Closing you should go down to your local post office and get a new key for your mailbox (if your mailbox has a lock). You can do this at the same time you set up mail forwarding.

You will usually need to bring down a copy of your deed (which you'll receive at closing) to do this.

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Change AddressClosing: Immediately AfterUltimate Nomad ChecklistWeek 13

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After Closing you should go down to your local post office and set up forwarding of your mail to your new property address. You can do this at the same time you get your new mailbox key.

You will usually need to bring down a copy of your deed (which you'll receive at closing) to do this.

There will probably be a small fee to do this. I've heard $1.

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Change AddressClosing: Immediately AfterUltimate Nomad ChecklistWeek 13

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Contact each of your Debit/Credit Card companies and update your address with each one of them.

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Change AddressClosing: Immediately AfterUltimate Nomad ChecklistWeek 13

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Contact each of your mortgage holders (for other homes and rental properties) and update your address with each one of them.

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Change AddressClosing: Immediately AfterUltimate Nomad ChecklistWeek 13

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We normally recommend that you put the Utilities in your name on the property you're buying prior to Closing to start the day of Closing. This however should remind you in case you forgot to do that AND, additionally, remind you to update your address with Utilities for properties other than the one you're buying now.

Update your address with all Utilities on the property you're buying and any rental properties you own as well.

Here is a list to help:

  • Gas
  • Water (including any water associations if applicable)
  • Trash
  • Electric
  • Garbage
  • Cable television
  • Internet service provider

NOTE: If you have Tenants or Tenant-Buyers in the property ask to get a Landlord policy for utilities so that your utilities will automatic switch into your name when the Tenant or Tenant-Buyer stops paying or removes them from their name.

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Change AddressClosing: Immediately AfterUltimate Nomad ChecklistWeek 13

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Update your address with the Insurance Companies that insure your properties (including this one and any rentals), cars and anything else.

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Change AddressClosing: Immediately AfterUltimate Nomad ChecklistWeek 13

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Update your address with all the places you bank including Banks and Credit Unions.

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Change AddressClosing: Immediately AfterUltimate Nomad ChecklistWeek 13

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Update your address with all Home Owner's Associations (HOAs) including the property your buying and all your rental properties.

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Change AddressClosing: Immediately AfterUltimate Nomad ChecklistWeek 13

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Contact each of your employers and update your address with each one of them.

In many cases contacting Human Resources will update everything, but in some cases you may need to contact multiple departments. If you have to contact different departments, be sure to do that. Some examples of different departments might include:

  • Your retirement accounts with your employer
  • your health care account with your employer
  • payroll with your employer

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Change AddressClosing: Immediately AfterUltimate Nomad ChecklistWeek 13

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Contact each of your Health/Dental Insurance Providers and update your address with each one of them.

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Change AddressClosing: Immediately AfterUltimate Nomad ChecklistWeek 13

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After you move-in update your address and contact info with the County you live in.

This allows them to send your auto registration to the correct address.

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Change AddressClosing: Immediately AfterUltimate Nomad ChecklistWeek 13

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Contact each of your IRA, 401K, Investment Account or Retirement Account Companies and update your address with each one of them.

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Change AddressClosing: Immediately AfterUltimate Nomad ChecklistWeek 13

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Contact all your subscriptions and update your address with each of them.

Some reminders of what you may have include:

  • Cable television
  • Internet Service Provider (ISP)
  • Magazines, newsletters and newspapers
  • Netflix
  • Software subscriptions like Dropbox, Spotify, Apple Music, Evernote, Lastpass etc

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Change AddressClosing: Immediately AfterUltimate Nomad ChecklistWeek 13

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Notify the friends and family that you want to know where you live of your new address and contact info.

Some clients may opt to use this opportunity to clean up their friends list.

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Change AddressClosing: Immediately AfterUltimate Nomad ChecklistWeek 13

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If your Tenants and/or Tenant-Buyers are sending rent or giving you notice at your previous home address, then make sure you update each of them with your new address.

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Change AddressClosing: Immediately AfterUltimate Nomad ChecklistWeek 13

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Read "Closing: Immediately After":

https://learntoberich.com/immediately-after/

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ClosingClosing: Immediately AfterUltimate Nomad ChecklistWeek 13

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Change the locks or have the current locks on your new property rekeyed.

Some landlords may want to put locks on that allow you to easily rekey the locks between future tenants.

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Closing: Immediately AfterUltimate Nomad ChecklistWeek 13

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Go to your favorite Home Improvement Store and buy a small fire extinguisher for your new home and put it underneath the sink in the kitchen.

You'll want this for safety reasons yourself if you move in as a Nomad but also for tenants once you move out and convert it to rental.

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Have professional photographs taken of your new property just after Closing while it is still vacant by your Photographer.

You will use these when you market the property for rent and you'll be able to take photos without your personal stuff showing.

Mark this task complete when photos are taken.

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Once you’ve completed the Closing stage in the Buying Process Overview you should move on to the Post Closing checklist.

IMPORTANT NOTE: This checklist is based on what I personally use with clients in Northern Colorado. Please rely on your local real estate agent for how it works in your local real estate market. This process will definitely vary in different States.

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