As a first-time homebuyer in Markham, your closing may be a stressful time of uncertainty and confusion. With much paperwork to sign, money exchanging hands and moving plans to make, your head must be spinning. This article will guide you, step by step, into the closing process.
Step 1 – Arrange for your utility hook-ups.
You can start doing this about a month before closing. You’ll want to schedule the natural gas and hydro hookups for the day of moving, but you might be wise to wait for cable until the day after your move, so they aren’t in your way. Be prepared that you may have to pay first and last, plus hookup fees on your first bill.
Step 2 – Arrange a meeting with your lender
Have a meeting with the lender to determine what closing costs will be deducted. These can include:
· Mortgage insurance
· Appraisal fees
You may need to come up with this money and it is best not to wait until the last day to find out. Also, gather together items like proof of income, proof of insurance and the like and keep it in a general folder in case the lender or lawyer requests it. It will be at this time that you’ll also want to ensure their appraisal is complete and that the home is worth what you paid for it, so nothing goes wrong with your mortgage.
Step 3 – Schedule a meeting with the lawyer
Again, there may be additional fees at closing and you should know about them. For example, if the sellers have pre-paid on property taxes, you may have to owe them this money. At this meeting you should also talk about title insurance. At this meeting, the balance of your down payment will most likely be needed in the form of a certified cheque, money order or bank draft.
Step 4 – Schedule a pre-closing visit a few days before the closing date
This will allow you to conduct a final inspection and ensure the home is in the condition it was in at purchase. Feel free to spend as much time as possible and question everything that seems out of place. If you see new damages or missing items that were included in the deal, bring this up with your real estate professional so the matter can be solved before close.
Step 5 – Be prepared for setbacks
On your move-in day, be prepared that you may not get the key until later in the day. The lawyer’s office can’t release it until the sellers have moved out and this could be as late as 6pm. Have your movers start putting your furniture on the truck in the afternoon (unless you want to pay them for the possibility of standing around). You will need to attend the lawyer’s office to sign for the key, so be prepared to take this time out of your day.
Step 6 – Do a move-in inspection
On move-in you’ll want to do another inspection and check all appliances and other important fixtures are working and in place. Do this before the movers arrive with your belongings.
Step 7 – Relax!
You just moved into your first house. Pat yourself on the back and start unpacking.
If you need help with buying your first home or understanding the closing process, don’t hesitate to get in touch.