Real estate transactions in Florida can be complex, especially if commercial property is involved or it is your first time purchasing a home. The transaction is typically complete on the closing date.
The closing date is when documents are signed officially signing the property over to the buyer and releasing the funds to the seller. There is usually a gap of time between the signing of the sales contract and closing date.
But what do you do during that time? There are several steps you should take to prepare for closing.
Home inspection
The first is having an inspection of the property performed. Most real estate sales contracts require the property to pass inspection before the sale goes through. The inspection should be conducted as soon as possible after the signing of the sales agreement to ensure there is enough time to address and repair any issues prior to closing.
Additionally, if the inspection reveals major defects that cannot be fixed for a reasonable cost, this might be a reason to cancel the sale altogether.
Your next steps are purchasing homeowners’ insurance and meeting with your lender to schedule an appraisal of the property. You can then begin collecting the necessary documents for your loan application.
Collecting documents
Even if you were already pre-approved for a mortgage, you will likely receive a list of documents you must provide to your mortgage lender. These can include tax forms, pay stubs, proof of your homeowners’ insurance and bank information.
You will receive a closing disclosure a few days before your closing date. This is a document that contains information on your mortgage loan and sale costs. Review the numbers carefully to make sure they reflect the terms of your initial agreement.
The final step is a walkthrough. This is often done within 24 hours of closing and sometimes just prior to the closing meeting. At your closing meeting, you will need to bring certain documents and any costs you agreed to pay at closing. You should then receive the keys to your new home and be able to move in.
