Conduct Pre-Closing Activities

Once your mortgage has been approved, you will receive a commitment letter from you lender. This signals the beginning of your pre-closing activities. You will be working with the lender’s attorney from here on. The attorney will perform the title search to verify that the seller has the right to sell the property. The attorney will also prepare the mortgage documents for the closing and inform you of any outstanding conditions that you must meet before the closing.

As a condition of closing, you must obtain property insurance for the property you are binding. Your insurance company will issue you a binder effective on the date of your closing. This binder converts to an insurance policy at the time of closing. Property insurance is something that you should shop for because the prices can vary greatly. If you have car insurance, ask your agent if they also sell property insurance. Insurance companies usually will give you a discount on both policies if you have auto and home insurance placed with them.

A couple of days before the closing, the lender’s attorney will notify you regarding any money you must bring to the closing. If you do have to bring money, it should be in a cashier’s check, treasurer’s check, or money order. Do not bring cash or personal checks.

Just before the closing, revisit the property to make sure it is in the condition specified in the Purchase and Sale document. If you have any issues, notify the real estate agent, lender’s attorney, and your attorney immediately. They will do everything possible to rectify the situation. If it cannot be taken care of by the closing, the closing may be delayed