Complete Your Closing Checklist
Once you have your team of closing experts ready to review your contract, you must also know how to prepare for closing contingencies. These are conditions listed in a contract that you must meet before the transaction becomes legally binding. Take note of the following contingencies that you must accomplish:
- Home inspection – Hire a home inspector to make sure there aren’t any hidden faults that could cost you money after your seller is long gone.
- Appraisal – This is required by your mortgage lender to keep them from loaning you more money than the house is worth. You or your real estate agent can arrange for a professional appraiser to estimate the property’s current market value.
- Loan documents – Organize all your documentation: identification, income statements (pay stubs, W-2 forms), asset statements (bank accounts, investments), insurance information, and a copy of the contract. You’ll also need—if applicable—a divorce decree (child support, alimony information) and bankruptcy papers.