6 Ways To Prepare for Closing on Your New Home

Buying a home in Naples, Florida, can seem like an easy choice for many individuals.

After all, Naples is one of the most attractive destinations in the state, the weather is nearly perfect for much of the year, the beaches along the Gulf of Mexico are spectacular and the potential for resale value and rental income make it an investor’s dream.

All that being said, however, the process of choosing a home, putting in an offer and following through until the closing is official can be a daunting task.

Ensure that the process is successful and free from stress by utilizing these top seven tips on how to prepare for the closing of your new home in Naples.

1. Confirm That Your Mortgage Provider Has All Necessary Documents

Although some buyers who purchase homes in Naples pay cash for their property, a large number of buyers will require some kind of financing.

Your mortgage provider may ask you for documents from time to time that are needed to ensure the closing and the loan for your purchase, but it is important not to wait for them to ask you.

It does happen that 24 hours before the closing, your mortgage provider lets you know that they need important documents, some of which might not be easy to procure on short notice.

To ensure that everything goes smoothly, call your mortgage provider a week out to find out if there are any additional documents you need to submit in order for the financing to go through.

2. Designate a Time and Place for the Closing

It is very common for the paperwork between a buyer and seller to designate a date for the closing, but this generally represents the final day that you can close on the home and still have all the paperwork be valid.

It is possible to move that date forward, if both parties are happy, but not to postpone it without resigning all the related documents with a new end date in place.

Even if you have a date in mind that all parties are happy with, don’t forget to be specific about the time and the place.

It is common for closing to take place in the office of an attorney or in the office of the buying or selling agent, so make sure that you can all agree on a central, convenient spot for the closing.

3. Investigate Utility Transfers

After officially closing on your new home in Naples, you might be ready to take a tour of the property or even spend a night there right away.

Unfortunately, you could be in for a disappointing surprise if all of the utilities are disconnected.

Some sellers take steps to turn off the water, electricity and other utilities as soon as the final walk through is complete, which helps them to cut costs.

However, as a buyer, you may have to go without those necessary utilities. Ask the seller how they plan to cancel the utility accounts and whether you can transfer them to your name on a given date without disrupting the service.

4. Schedule a Final Walk Through of the Home

It is generally a good idea for all potential buyers to walk through the home one final time before closing.

Ideally, that walk through should be along with your real estate agent, and it should be within 24 hours of the arranged time for the closing.

This is especially important if you have asked the seller to complete any repairs or upgrades to the property as a condition of the sale.

The walk-through is your final chance to check that everything is as it should be. If there any problems, there is still an opportunity at this stage for the seller to address them before the closing.

5. Find Out What to Bring to the Closing

There are often up to 20 different documents that need to be signed or presented at the closing, and it is up to you to bring each of them.

This is where having an expert real estate agent in Naples, Florida, can go a long way, because they can give you a detailed list of what you need to bring and even in what order it will be needed.

As a general guideline, this list sums up the most common documents that you should have with you at the closing:

• Original completed mortgage home loan application
• A certified or cashier’s check for the amount of the down payment and any closing costs
• Proof of a new homeowner’s insurance policy dated for the day of the closing
• One or more pieces of photo identification like a driver’s license or passport

6. Determine Whether There are Any Outstanding Taxes Involved

When selling homes in Naples, many sellers prorate the property taxes and ask the buyers to pay the remaining portion of the year.

However, this amount generally needs to be paid upfront rather than at the end of the calendar year.

If you are not aware of an existing arrangement for the taxes on the property you are about to buy in Naples, it is because there may be outstanding property taxes owed by the seller.

Once the closing is complete, you could be liable for these taxes, resulting in an unexpected expense.

To avoid this unpleasant inheritance, ask your agent to contact the seller and determine how much is owed and what the plans for payment might be.

7. Leave Plenty of Time for the Closing Itself

One common mistake that buyers make in Naples is assuming that the closing will be a 20-minute event where both parties sign on the dotted line and then go their separate ways.

While that can and does happen on occasion, it can also take several hours.

The last thing you want is to have to postpone the closing because you have another meeting or appointment you have to get to.

You might be waiting on a last-minute confirmation from your mortgage lender or the attorneys involved might have to take a few extra minutes to locate a property survey document.

Whatever the case may be, it is best to leave at least a few hours for the closing. If you end up with a little bit of extra time, you can always celebrate your new home purchase with a special meal or a drink.

Buying a new home in Naples, Florida, is a wonderful investment and an exciting process. Ensure that it goes as smoothly as possible, with as few surprises as possible, thanks to the seven helpful tips listed out above.

Want to learn more? Contact Melinda today.