You did it! You finally bought your dream home or sold your property and closing is just a few weeks/months away. The adrenaline has worn off from the exciting process of buying or selling your property and you are planning your next moves. Do not let your guard down now though, there’s still a bit to go before the finish line. Here’s a guide on how to prepare for closing day.
How to prepare for closing day if you are selling
1) Contact utilities, TV, telephone and internet services
You should call all utilities, TV, telephone and internet services at least two weeks prior to closing to disconnect your services. Also, update all your important documents to your new address. To help you with this process I have partnered with MOVE SNAP. A digital moving concierge service. The best part is that as a client you have this service for free.
2) Do not cancel your insurance
Do not cancel your home insurance policy until it is confirmed that your deal has closed. Also, if you are moving out a few weeks prior to closing you need to notify your insurer that the home will be vacant. This way you’ll be covered if anything happens.
3) Prepare for moving day
Prepare to be moved out by the afternoon on the closing day. There is no set time for the closing of the transaction but it’s usually in the afternoon. If you are selling a condo, call the management and reserve an elevator as early as possible.
4) Meeting with lawyer
Prior to meeting your lawyer, you will need to prepare a copy of your mortgage documents, tax bills, survey (if available) and deed to the property. You will also need to bring a copy of the key to your lawyer so that they can send it to the buyer’s lawyer prior to the closing date. This meeting usually occurs a few days prior to closing.
Checklist if you are buying
1) Don’t make major purchases or change jobs
Your deal is now firm, all conditions have been removed and you’d like to plan your next steps. Between the deal going firm and closing, there is a number of things you shouldn’t do to avoid complications.
The lender has given you a commitment to finance your purchase based on your financial situation at the time of the purchase. If the lender finds out you leased a brand new car, took out a major loan or changed jobs they pull their financing.
2) Choose a lawyer
You should choose a lawyer prior to purchasing a property. But if you haven’t done so you must do it once your offer is accepted.
Once your lawyer has received the agreement of purchase and sale and other required documents they’ll send you a client info sheet that you need to submit to them as soon as possible. They will also send you a preliminary statement of funds which will have the approximate amount of money you’ll need to close the deal. It includes closing costs and the remainder of your down-payment. The final statement of adjustments will be given just a few days before the closing, make sure that you have enough funds ready to cover all expected costs.
3) Arrange for fire insurance
Your lender requires that you obtain fire insurance for the full replacement cost of your new home. The insurance paperwork needs to be sent to your lawyer prior to closing.
4) Set up utilities, TV, telephone and internet services
You should set up all utilities, TV, telephone and internet services at least two weeks prior to closing. You should also update all your important documents to your new address. To help you with this process I have partnered with MOVE SNAP, a digital moving concierge service. The best part is that as my client you have this service for free.
5) Schedule you pre-closing visit
A typical purchase agreement allows for 2 buyer visits prior to closing. The first visit is usually to take measurements or show off your new digs to family members and can be done at any time. The last visit should be scheduled a few days prior to closing and the purpose is to make sure that the property is in the same condition as it was when you made the offer.
6) Prepare for moving day
On the closing day you will receive the keys once the transaction has been closed by the two lawyers. Prepare for your move in the late afternoon as that is likely when you will receive the keys and the seller has moved out. If you purchased a condo, call the management company and reserve an elevator as early as possible.
7) Meet with your lawyer
The meeting with the your lawyer is a few days prior to your closing date. You will need to bring a certified cheque, money order or draft with the balance of the money needed to close the deal.