Step 7 to Purchasing a Home

As soon as you get a ratified contract in step #5, you can begin working on the mortgage in step #6 and preparing for the closing in step #7. As well as obtaining a mortgage, you need insurance and a closing attorney. The bank will require a certain level of insurance on the home. You should certainly shop around for insurance. Their rates will vary widely. A new thing that has started recently is that they charge you now based on your credit score as well as the cost to replace the home. You do not have to insure the land of course, but you will need liability insurance as well as hazard insurance. Liability insurance covers you in case someone gets injured while on your property. Hazard insurance covers fire, wind, hail, etc. You may need separate flood insurance as well depending on what flood zone the property is in. If you are buying a condo or townhouse, the insurance may be included in the regime fee. If so, you will still need a policy to cover the personal property contents you have inside the condo.

After you have negotiated the home inspection repairs, you should arrange to hire a closing attorney. This should be someone who does a lot of real estate closings. They will search the court records of the property, record all the documents involved, set up a survey if a recent one doesn't exist, coordinate with your lender and create the HUD settlement statement that shows all of the costs involved. Many times, the closing attorney will also have a title insurance company that will provide you with title insurance. This covers you and the bank in case there was something overlooked in the court records. Many of the attorney's fees are negotiable as well. Don't forget to actually make an appointment with the attorney for the closing. They get booked up near the end of the month.

As you get near the closing date, make sure to set up the transfer of utilities and change your address with the post office.

On the day of closing, you should do a final walk through of the home with your realtor to make sure everything is alright before you go to closing.