It’s the busiest time of year for closings on homes in the Iowa City area and I’m fielding lots of questions from home buyers about the closing process. This post covers the most frequently asked questions about the closing process when you buy a home in the Iowa City area.
- The first thing is that there’s often some misunderstanding about the closing date and possession. I’ve had a couple of clients think they happen independently of one another. Here in the Iowa City area that is not the case. When you sign your loan documents at closing that’s also the time you can expect to get the keys/garage door opener to your new place. In signing the loan documents you provide funds to pay for the house and checks are distributed to the involved parties. At the same time sellers (or their agent) will have the documents transferring the property into your name. That’s the deal, you provide the funds, they transfer the property into your name. Fortunately none of this needs to be recorded before you can take possession of the house. The recording of the documents happens later and is not something you are a part of.
- Can you start moving your stuff in before closing? Typically no, that’s not an option. Both you and the seller need to have signed all the necessary paperwork before you can start moving your stuff in. Are there exceptions to this rule? Yes, if you and the seller write a clause into the contract or write an addendum to purchase prior to closing there are sometimes exceptions. There need to be extenuating circumstances though and it requires prior approval from both parties. That’s called early occupancy and a subject I’ll cover in a follow up post.
- So now to maybe the biggest question I get: When will I know how much the check needs to be that I bring to closing? This is information that you will have when you get the preliminary copy of the Closing Disclosures from your bank prior to closing. The Closing Statement breaks down all the costs associated with the loan, including the final amount for the check that the lender needs at closing.
These are a couple of the big questions I get about closing on a home. Am I missing something you’d like to see here? Leave a comment and I’ll remedy that!