What To Do Before You Close On Your New Home

1 Month Before Closing

Take your loan from pre-approved to approved.

Gather the financial information your lender requests to take your loan from being pre-qualified or pre-approved to fully approved. The lender will provide a list of required documents that they’ll need to sign off on before the closing date is set.

“Make sure to get this completed as soon as possible,” says Milicevic. It doesn’t hurt to contact your lender every few days during this process, too, to ensure everything is on track.

Schedule a home inspection.

Ask your realtor for home inspector referrals, and schedule the home inspection for their next available date, making sure it’s still within your option period for backing out in case they find a deal-breaker.

“Trying to save time or money by skipping an inspection is risky, as serious issues are often hidden beneath the surface,” says real estate broker Jon Wade. “I’ve seen buyers move in only to discover major problems they didn’t budget for.”

Pro-tip: Get estimates for any big repairs.

Lock in homeowners’ insurance.

Most lenders won’t let you close without proof of coverage, plus it’s wise to know what your yearly insurance expenses will be, in case they put the house out of reach financially. “Don’t just accept the first insurance quote,” says Wade. “Get two or three, so you’re not overpaying.”

Know your expected closing costs.

Ask for a breakdown of your expected closing costs so nothing surprises you. “If you wait on these, you could delay your closing or end up owing more than you expected,” says Wade. I’ve seen buyers blindsided by final numbers because they didn’t check early enough.”

Create a strategy for moving your belongings.

Especially if you have a lot of stuff, it’s time to start a packing plan. Begin the process of decluttering and packing non-essentials. If you’re going to hire movers, this is a good time to get price quotes and determine their availability, plus their ability to move specialized items like pianos or artwork.

Prepare to leave your current home.

If you’re renting, double-check your current lease agreement. Many landlords require 30 days’ notice, but you also don’t want to risk leaving yourself without a home if the new one falls through. Work with your landlord about what sort of official notice you need to give to minimize paying double with both rent and a mortgage.

3 Weeks Before Closing

By now, you should be pre-approved for the loan, with the home inspection complete and the appraisal ordered by the lender. “You’re in prep mode now,” says Wade. “You’ll thank yourself later for doing this early.”

Start setting up utilities.

Contact utility companies now to set up accounts and give them your move-in date. Don’t forget electric, gas/propane, water/sewer, garbage, internet, cable and a phone land-line (if you still use one of those).

“No utilities means no lights, no hot water and no Wi-Fi when you move in,” says Wade. “A common mistake is forgetting to schedule the internet, as it’s often the slowest one to install.”

Schedule the final walk-through.

Ask your realtor to schedule the walk-through, preferably with it taking place about one week before closing. “Skipping the walk-through means you might miss last-minute issues the seller didn’t mention,” says Wade.

Review closing documents.

Ask your realtor or lender for a draft of your closing documents, so you can review them in advance. Reading it all might feel tedious, but “not reviewing documents beforehand turns closing day into a rushed mess,” says Wade.

Review the inspection report.

You should have received the inspection report by now. Discuss the findings with your agent and request any repairs or credits from the seller.

2 Weeks Before Closing

“At this point, you should have a very good sense of whether the transaction is moving forward successfully,” says Milicevic. By now you should have full loan approval, negotiated any repairs or credits with the seller and have your appraisal report in hand.

“You’re almost there; now’s the time to lock in the details,” says Wade.

Confirm the closing date.

Confirm the exact closing date and time with your agent and lender, and double-check with both about any lingering tasks that still need to be completed.

Prepare closing funds.

Ask your lender how and when to send your funds (usually they’ll require a certified check or wire transfer). Make sure funds for both the down payment and closing costs are accessible in your bank account. “If you don’t have the funds ready or don’t confirm dates, your whole closing can fall apart,” says Wade. “Pro-tip: Triple-check your wiring instructions to avoid scams.”

1 Week Before Closing

“By now, you should know for certain whether this transaction is going to close successfully,” says Milicevic. The appraisal should be finalized, and your lender should have completed underwriting.

“You’re steps away from the finish line; stay focused,” says Wade.

Do the final walk-through.

With a week left, you’ll still have time to ask the seller to fix anything if needed. Bring a checklist to note any issues, take photos and don’t be afraid to speak up. “Skipping the walk-through is a gamble,” says Wade. “Pro-tip: Bring a friend; they may notice things you don’t.”

Start packing, for real.

It’s time to start loading up those boxes once and for all. Label them by room. If you plan on hiring a moving company, this is also the time to make sure your move is scheduled.

Triple-check all of the details.

Again, confirm with your lender and agent that they have everything they need from you and that all of the paperwork and processes are in order. Also, double-check with them about the closing time and location.

“I’ve had buyers show up at the wrong office, don’t be that person,” says Wade.

24 Hours Before Closing

“At this point, there shouldn’t be much left to do,” says Milicevic. “This is an exciting moment. Soon, you’ll be settling into your new space and beginning an exciting new chapter.”

Review everything, again.

Review your final documents one last time. Make sure you understand what you’re signing. Reconfirm your payment details and the total amount. Read every page and ask questions. Print or screenshot wire instructions in advance.

“Missing your funds will delay the closing,” says Wade. ” Also, not understanding the paperwork could lead to regrets later. This is the last checkpoint. You’ve got this.”

Closing Day

Final prep for the main event.

Don’t forget to bring your ID (driver’s license or passport) and your full payment. Arrive 15 to 20 minutes early, as closings can get backed up. Then, once you’re at the closing table, don’t be afraid to take your time signing the closing documents. Ask questions if anything seems off.

“It’s a common mistake to rush through documents without understanding them,” says Wade. “Pro-tip: Bring your own pen; sometimes they really do run out. And check that your keys and garage remotes work before you leave.”

Finalize your new home.

Sign the papers. Get the keys. Celebrate.

“Signing everything correctly finalizes the deal and getting the keys officially makes the place yours,” says Wade. “You did it. Welcome home.”

FAQ

What shouldn’t you do before closing on a house?

Do not, under any circumstances, take on new debt during the home loan process, including financing a car, opening a new credit card or making large purchases like appliances or furniture. This also includes not having your credit pulled for any reason other than by the lender you’re working with. “This is absolutely critical,” says Milicevic. “Maintaining your financial stability during this period is essential to ensuring your loan closes smoothly.”

Your lender will likely run a final credit check before closing and any new debt can change your credit profile, affect your debt-to-income ratio and even cause your loan to be delayed or denied, says Wade. “It’s best to wait until the keys are in your hand before making any big financial moves,” he says.

Can I switch jobs before closing on a house?

Maybe. Switching jobs right before closing can raise red flags for your lender. If you’re changing to a new role in the same field with a similar or higher salary, it might be fine, but it still needs to be communicated early and clearly, says Wade. “If you’re moving to a different industry, becoming self-employed or changing to commission-based pay, that can create issues,” he says. “In general, it’s best to hold off on any job changes until after the deal is finalized.”

About the Experts

• Jon Wade is a real estate expert, resort market professional and Broker Owner at The Steamboat Group, a family-owned real estate firm in Colorado. He has been working in the industry since 2005.
• Luka Milicevic is a contractor/home builder, plus an avid DYIer and Real Estate agent in the Nashville, Tennessee, area.

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