MOST IMPORTANTLY DO NOT STRESS OUT!!
If you thought house shopping was exhausting, you ain’t seen nothin’ yet.
The preparation period leading to your closing is very hectic.
Take it all in stride and if you need any help, just call me.
Steps
Provide your mortgage broker/lender with a copy of the offer and a copy of the MLS Listing, so that they can proceed to arrange the financing.
Carefully analyze the lenders offer of financing, take into consideration your tolerance for mortgage rate fluctuations, your goals and aspiration of how quickly you want to pay the mortgage off and your financial comfort zone. Shop around. Negotiate. Bluff.
Arrange for a home inspection. I don’t like to refer home inspectors but can offer some business cards.
If you don’t have a lawyer, choose a real estate lawyer now. Carefully review all fees and disbursements, land transfer tax, mortgage deductions, adjustments and other closing costs with your real estate lawyer.
Send mortgage approval to my office and your lawyer.
If you are a first-time home buyer and you plan to use funds from your RRSP as part of the down payment, the funds must have been contributed at least 90 days prior to withdrawal.
If you are a tenant, notify your landlord about your plans to cancel your lease or sublet and make sure you give ample notice, as per your lease, or a standard sixty days. Here is the Residential Tenancies Act.
Ask your insurance agent to draw up a “binder letter” before closing, showing the name of the insuring company, the amount of coverage, its expiration date, and the name of any lenders in the loss payable clause. Coverage should be for the full insurable value of the building only (not the land) on a replacement cost basis. No insurance-no mortgage, the lender will not fund a property without adequate insurance.
Make sure the insurance company comes to inspect your home themselves. Make them earn their money and reconfirm all the information you provided by inspecting the property.
Give the insurance company details of your lawyer, they will forward the certificate of insurance to him/her.
Contact the utility companies- the water, hydro and gas departments to have new service connected for your move day. Click for contact info: Alectra Utilities and Enbridge Union Gas
Arrange for monthly payment of property taxes via direct debit to the City of Hamilton Tax Department. Decline the bank’s offer to do this on your behalf, unless they insist of course. They upcharge for the service and collect money in advance, so you end up paying property tax/10X12 every year. There is no free lunch at the bank!!!
Oh yeah, enroll the kids in the new school.
If moving into a condominium, verify with condo’s management office that your monthly condo fee account has been set up, well in advance. Request a
copy of your condo documents from your lawyer and read the rules, regulations and by-laws governing you and other condominium residents.
Arrange for your move as early as possible. If you are doing the packing yourself, get more boxes than you think you’ll need, and plan for extra time. If moving
into a condo apartment, remember to book your service elevator with your condo management, well in advance.
Arrange to review and sign all closing documents with your lawyer a few days before closing. At that time, you should also deliver the necessary funds for closing. The funds should be certified and made payable to your lawyer/solicitor in trust. Be sure to get information about any payments due shortly after closing such as
mortgage payments, property taxes and condominium maintenance fees.
Obtain a change of address forms from the post office. For a small charge, you can also arrange for your mail to be rerouted to your new home.
You’ll receive your keys on the date of closing from your real estate lawyer. This will likely happen late in the afternoon and do not make plans to move into your new
home first thing in the morning. The current owners need time to move out and the actual closing and exchange of funds take time.
If you thought house shopping was exhausting, you ain’t seen nothin’ yet. The preparation period leading to your closing is very hectic. Take it all in stride and if you need any help, just call me.
Steps
- You’ve put in an offer on a house and it has been accepted. You spend your days telling people how absolutely fabulous I am
- Provide your mortgage broker/lender with a copy of the offer and a copy of the MLS Listing, so that they can proceed to arrange the finance.
- Carefully analyze the lender’s offer of financing, take into consideration your tolerance for mortgage rate fluctuations, your goals and aspiration of how quickly you want to pay the mortgage off and your financial comfort zone. Shop around. Negotiate. Bluff
- Arrange for a home inspection. I don’t like to refer home inspectors but can offer some business cards
- If you don’t have a lawyer, choose a real estate lawyer now. Carefully review all fees and disbursements, land transfer tax, mortgage deductions, adjustments and other closing costs with your real estate lawyer
- Send mortgage approval to my office and your lawyer
- If you are a first-time home buyer and you plan to use funds from your RRSP as part of the down payment, the funds must have been contributed at least 90 days prior to withdrawal
- If you are a tenant, notify your landlord about your plans to cancel your lease or sublet and make sure you give ample notice, as per your lease, or a standard sixty days. Here is the Residential Tenancies Act
- Ask your insurance agent to draw up a “binder letter” before closing, showing the name of the insuring company, the amount of coverage, its expiration date, and the name of any lenders in the loss payable clause. Coverage should be for the full insurable value of the building only (not the land) on a replacement cost basis. No insurance-no mortgage, the lender will not fund a property without adequate insurance. Make sure the insurance company comes to inspect your home themselves. Make them earn their money and reconfirm all the information you provided by inspecting the property. Give the insurance company details of your lawyer, they will forward the certificate of insurance to him/her.
- Contact the utility companies- the water, hydro and gas departments to have new service connected for your move day. Click for contact info. Horizon Utilities Electricity Union Gas
- Arrange for monthly payment of property taxes via direct debit to the City of Hamilton Tax Department. Decline the bank’s offer to do this on your behalf, unless they insist of course. They upcharge for the service and collect money in advance, so you end up paying property tax/10X12 every year.
- Oh yeah, enroll the kids in the new school
- If moving into a condominium, verify with condo’s management office that your monthly condo fee account has been set up, well in advance. Request a copy of your condo documents from your lawyer and read the rules, regulations and by-laws governing you and other condominium residents.
- Arrange for your move as early as possible. If you are doing the packing yourself, get more boxes than you think you’ll need, and plan for extra time. If moving into a condo apartment, remember to book your service elevator with your condo management, well in advance.
- Arrange to review and sign all closing documents with your lawyer a few days before closing. At that time, you should also deliver the necessary funds for closing. The funds should be certified and made payable to your lawyer/solicitor in trust. Be sure to get information about any payments due shortly after closing such as mortgage payments, property taxes and condominium maintenance fees.
- Obtain a change of address forms from the post office. For a small charge, you can also arrange for your mail to be rerouted to your new home.
- You’ll receive your keys on the date of closing from your real estate lawyer. This will likely happen late in the afternoon and do not make plans to move into your new home first thing in the morning. The current owners need time to move out and the actual closing and exchange of funds take time
DO NOT
- Quit or change your job. The lender will call your employer shortly before closing to verify you are there. Now is not the time for a sabbatical or a career change.
- Go on a shopping spree. Your mortgage has been approved based on your affordability, (GDS AND TDS Ratios) credit score and income. Do not make alterations to that. I have seen a mortgage revoked after a couple went on a 30K furniture shopping spree.
- Do not be late or miss monthly debt repayments during this time. A lender may actually re-run your credit score before closing.
- Do not divorce, it will not get you out of your obligation to close on the transaction.
- Do not die!! Believe it or not, your poor estate would still be obligated to proceed with the closing.
MOST IMPORTANTLY
DO NOT STRESS OUT!!
DO NOT
Quit or change your job. The lender will call your employer shortly before closing to verify you are there. Now is not the time for a sabbatical or a career change.
Go on a shopping spree. Your mortgage has been approved based on your affordability (GDS AND TDS Ratios) credit score and income. Do not make alterations to that. I have seen a mortgage revoked after a couple went on a 30K furniture shopping spree.
Do not be late or miss monthly debt repayments during this time. A lender may actually re-run your credit score before closing.
Do not divorce, it will not get you out of your obligation to close on the transaction.
Do not die!! Believe it or not, your poor estate would still be obligated to proceed with the closing.