House Under Agreement? There's Still More Work to Do

So you've found your house, made an acceptable offer, had your home inspection and signed your Purchase and Sale document. Congratulations!

Usually within the first two weeks of having a house under agreement, your head will spin with everything that needs to be done all at once. Now you can sit back and relax a bit, but there are still a few things you need to do before the closing!

Apply for homeowners insurance for your new home. Your lender is going to require this, and usually you have to pay for a year up front to make sure your home is protected in case of a fire, or other disaster. Talk to your insurance agent to make sure you have the right coverage for you. It will have to cover, at minimum, the amount of your mortgage; the lender is going to want to make sure they recoup their cost if there is ever a loss on your home.

Talk to your lender about title insurance. The bank that is providing the money for you will require you carry this for their portion. You are also entitled to a homeowner's policy for yourself, which is good for the length of time you own the house. If you purchase both policies at the same time, chances are you'll save some money off the cost of your own policy. They do provide a discount for doing it this way.

The final walk through. Chances are, the contract to purchase the home has specific requirements on the condition the house needs to be in before the closing. You have the right to walk through your new home to make sure those contingencies have been met. It's best to do this a day or two in advance, so that if there is a problem, it will give the seller time to correct it. In this market with so many bank owned properties due to foreclosures, you might not be able to negotiate any kind of property conditions on your contract to purchase. Your real estate agent can counsel you on this further.

Now that you're ready to close, here's what you can expect.

The closing. This is where you will sit down with the closing attorney to sign all the paperwork needed to transfer the home to you. There will be a lot of paperwork to sign, and this will be where you bring any remaining funds that you need to settle the house. This will most likely have to be in the form of a certified check. You will also need a photo ID to present, to prove that you are actually you. A closing usually lasts for roughly an hour, but can go faster, or slower depending on the attorney and what is involved. Most often all the parties involved in the transaction are here, which would include you, the sellers, both real estate agents and the closing attorney. Sometimes your mortgage broker will show up as well.

A good real estate agent can guide you every step of the way. Make sure you're diligent in doing what needs to be done, as not to delay the closing. Happy moving!