Preparing for closing

The final days and weeks prior to closing can be a stressful period for both buyer and seller. For example, you may have second thoughts at the prospect of taking on such a large debt. Or, you may worry that something will happen to prevent the sale, and indeed, you have not bought the house until you close on it.

The signed sales contract and signed loan commitment letter do, however, obligate both you and the seller to complete the transaction. In fact, if you fail to do so, not only will you forfeit you deposit, but you may also find yourself embroiled in a lawsuit.

Setting the Closing Date

The closing date is set after your loan has been approved and the commitment letter is accepted. Often, the real estate sales professionals will coordinate this. You need to be sure that closing takes place before the lender's commitment expires and while the rate lock-in, if there is one, remains valid. You can now make definite moving plans.

• Discuss and resolve any issues or problems before closing.
• Sign the other papers fulfilling governmental regulations and transaction information.
• Look carefully over the numbers in the closing or settlement statement (the last document to appear) before signing.

Here's the day you've been waiting for. The papers are in order and money has been exchanged. You're handed the keys and the home is now yours!