On closing day, the seller officially signs the house over to you. It can take from 15 to 90 days to close on a home, depending on the complexity of your transaction, and the conditions attached to the purchase contract.
To avoid last-minute surprises:
- Think about taxes. If you buy a home toward the end of the year, ask your tax advisor or accountant if you should push the closing (and the tax savings involved) to January.
- Set a closing date that works for you.
If you're renting, set a closing date near the end of your lease to avoid paying unnecessary rent. The date of closing can also affect your closing costs. Be sure to schedule enough time to move in. If you plan to move on closing day, schedule the closing in the morning.
- Estimate your closing costs. Lenders are required to give good-faith estimates of closing costs within three days of a loan application. They can also give you an itemized list of closing costs, so be sure to ask for one. Closing costs typically range from 2 to 7 percent of the purchase price of a home.
- Schedule a final walk-through. Make certain the seller has completed any repairs specified in the purchase contract and has satisfied any other contingencies involving the home's condition.
CONGRATULATIONS ON YOUR NEW HOME!