Closing process explained

{{whyLabel}}: Most rental agreements require a 3-month notice period, making this the critical first step to avoid double-paying rent and mortgage.

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• Review your current lease for the specific 'Notice Period' clause.
• Draft a formal written notice including your move-out date.
• Send it via certified mail or hand-deliver it with a signed receipt.

{{doneWhenLabel}}: [Landlord has confirmed receipt of the termination notice in writing]

{{whyLabel}}: In many regions, an attorney is legally required to review the contract, perform title searches, and oversee the transfer of funds.

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• Look for a specialist in residential real estate law.
• Verify they are licensed in your specific state or province.
• Confirm their flat fee for closing services (typically $800–$1,500).

{{doneWhenLabel}}: [Engagement letter is signed and the attorney has the purchase contract]

{{whyLabel}}: Closing costs typically range from 2% to 5% of the home's purchase price and must be paid in liquid funds.

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• Calculate 5% of your purchase price as a 'worst-case' buffer.
• Include line items for: loan origination, title insurance, appraisal, and government recording fees.
• Move these funds into a high-yield savings account for easy access.

{{doneWhenLabel}}: [Total estimated closing amount is liquid and available in your bank account]

{{whyLabel}}: This identifies hidden defects (mold, structural issues, electrical) that could cost thousands later or serve as negotiation leverage.

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• Hire a certified inspector (e.g., ASHI or InterNACHI certified).
• Ensure they check the roof, HVAC, plumbing, and foundation.
• Attend the inspection personally to ask questions about maintenance.

{{doneWhenLabel}}: [A full written inspection report is received]

{{whyLabel}}: If the inspection reveals major issues, you must decide whether the seller fixes them or gives you a price reduction.

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• Focus on 'Big Three' issues: Safety, Structural, and Systems (HVAC/Roof).
• Request 'Seller Credits' instead of repairs to ensure you control the quality of the work later.
• Have your attorney draft the 'Repair Addendum'.

{{doneWhenLabel}}: [Both parties have signed the repair addendum or price adjustment]

{{whyLabel}}: The lender will not loan more than the home is worth; if the appraisal comes in low, you must bridge the gap or renegotiate.

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• Your lender will order this automatically, but you must pay the fee (approx. $400–$600).
• Ensure the appraiser has access to the property via the listing agent.
• Review the 'Appraised Value' against your 'Purchase Price'.

{{doneWhenLabel}}: [Lender confirms the appraisal meets or exceeds the purchase price]

{{whyLabel}}: Lenders will not fund the loan without proof of insurance starting on the day of closing.

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• Get quotes for 'Replacement Cost' coverage, not just 'Market Value'.
• Ensure the policy includes 'Lender's Loss Payable' clause with your bank's info.
• Send the 'Evidence of Insurance' (EOI) to your loan officer.

{{doneWhenLabel}}: [Insurance binder is delivered to the lender]

{{whyLabel}}: This ensures no one else has a claim to the property (liens, unpaid taxes, or easements).

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• Have your attorney check for 'Clouded Titles' or old mortgages not discharged.
• Verify the legal description matches the survey.
• Purchase 'Owner’s Title Insurance' to protect yourself from future claims.

{{doneWhenLabel}}: [Title is confirmed as 'Clear' or 'Marketable']

{{whyLabel}}: By law, you must receive this 3 days before closing to compare final costs with your initial Loan Estimate.

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• Compare the 'Final' vs. 'Estimated' loan costs.
• Check the interest rate and loan term one last time.
• Confirm the 'Cash to Close' amount is exactly what you expected.

{{doneWhenLabel}}: [CD is signed and acknowledged 72 hours before closing]

{{whyLabel}}: To ensure the seller has moved out, no new damage has occurred, and agreed repairs were completed.

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• Check that all appliances included in the sale are working.
• Flush toilets and turn on faucets to check for new leaks.
• Verify the house is in 'broom-clean' condition.

{{doneWhenLabel}}: [Property is verified to be in the agreed-upon condition]

{{whyLabel}}: Large sums must be sent via secure wire transfer; personal checks are rarely accepted at closing.

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• Call your attorney/title company to verify wire instructions (beware of email fraud).
• Visit your bank in person to initiate the transfer.
• Keep the 'Federal Reference Number' for tracking.

{{doneWhenLabel}}: [Attorney confirms receipt of the full closing funds]

{{whyLabel}}: This is the legal act that transfers ownership and creates your obligation to the lender.

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• Sign the 'Promissory Note' (your promise to pay back the loan).
• Sign the 'Deed of Trust' (puts the house up as collateral).
• Sign the 'Closing Statement' (final accounting of all money).

{{doneWhenLabel}}: [All documents are signed and notarized]

{{whyLabel}}: You have no way of knowing how many copies of the old keys exist with neighbors, contractors, or former owners.

{{howLabel}}:

• Buy new deadbolt sets or hire a locksmith.
• Replace locks on the front, back, and garage entry doors.
• Reset the garage door opener code.

{{doneWhenLabel}}: [All entry points are secured with new keys]

{{whyLabel}}: It is much easier to clean these high-sanitation areas while the house is completely empty.

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• Scrub inside cabinets and drawers before putting away dishes.
• Sanitize toilets, tubs, and showers.
• Clean behind the refrigerator and stove if they were included.

{{doneWhenLabel}}: [Kitchen and bathrooms are sanitized and ready for use]

{{whyLabel}}: Moving day is exhausting; having a functional place to sleep on night one is vital for morale.

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• Assemble the bed frame first.
• Unpack clean sheets and pillows.
• Set up window coverings (even temporary ones) for privacy.

{{doneWhenLabel}}: [Bed is made and the room is ready for sleep]