Information for Home Buyers - Page 3
Prepare for the Closing
Besides finalizing your loan and scheduling a final walk-through there are some other things to get
done before the closing. If you are using a bank for your mortgage loan you will need a lawyer to do
the title work for you. Many banks in the Peoria area can order the title work for you and do their own
closings. Your lender wants to make sure the title to this property is good as much as you do
because they are loaning you a lot of money for it. If you are using a mortgage company they will
handle the title work and run the closing.
You will need to bring proof of homeowners insurance to the closing. The lender will want to make
sure that the house is insured, otherwise, you may not be able to cover the rest of the mortgage in
case the house burns down before you pay it off. The lender will also require title insurance to
protect you and them in case there is a past problem concerning ownership of the property.
You should call the electric company to make sure the change the electric service to you on the date
of possession. If you have natural gas or propane you will need that changed over to your name. The
propane in the tank will be pro-rated to the date of the closing. In other words you will have to
reimburse the seller for any propane left in the tank that they had purchased. You will need to call the
water company to have water and sewer changed over to your name, unless you have your own well
and septic. Of course you will need to call the phone company and submit a change of address to
your post office.
One of the most important things to do before closing is to find out how much money you need to
bring. The closing agent will prepare a settlement statement listing what both the seller and the
buyer owe and are owed by the other party. You will need to bring a Certified Bank Check to cover any
down payment, closing costs, or other expenses. Also bring your personal checkbook in case some
minor unforeseen expense comes up.
The closing will be scheduled on or before the closing date specified in the Residential Sales
Contract (your offer to the seller). It will be held at the your lending company, a title company or a
lawyers office.
The Closing Process
The closing is the point where the ownership of the property is transferred from the seller to the
buyer in exchange for the sale price. Two main things happen at the closing. All promises made by
both parties in the Residential Sales Contract (your offer to the seller) must be fulfilled. Your
mortgage loan is finalized and the money is transferred.
The closing should take around 1 hour to review and complete the paperwork. The closing agent will
review the settlement statement that details what the seller and you owe, who you owe, and what you
may be owed by the seller. The items could include transfer taxes, real estate taxes, prorated
heating fuel, and even prorated rent if part of the property was leased to another and the rent was
paid in advance.
After you walk out of the closing as the new owner of the property take some time to celebrate. This
is a major purchase and can be stressful in even the best situations. Celebrate your success and
your new home.
Besides finalizing your loan and scheduling a final walk-through there are some other things to get
done before the closing. If you are using a bank for your mortgage loan you will need a lawyer to do
the title work for you. Many banks in the Peoria area can order the title work for you and do their own
closings. Your lender wants to make sure the title to this property is good as much as you do
because they are loaning you a lot of money for it. If you are using a mortgage company they will
handle the title work and run the closing.
You will need to bring proof of homeowners insurance to the closing. The lender will want to make
sure that the house is insured, otherwise, you may not be able to cover the rest of the mortgage in
case the house burns down before you pay it off. The lender will also require title insurance to
protect you and them in case there is a past problem concerning ownership of the property.
You should call the electric company to make sure the change the electric service to you on the date
of possession. If you have natural gas or propane you will need that changed over to your name. The
propane in the tank will be pro-rated to the date of the closing. In other words you will have to
reimburse the seller for any propane left in the tank that they had purchased. You will need to call the
water company to have water and sewer changed over to your name, unless you have your own well
and septic. Of course you will need to call the phone company and submit a change of address to
your post office.
One of the most important things to do before closing is to find out how much money you need to
bring. The closing agent will prepare a settlement statement listing what both the seller and the
buyer owe and are owed by the other party. You will need to bring a Certified Bank Check to cover any
down payment, closing costs, or other expenses. Also bring your personal checkbook in case some
minor unforeseen expense comes up.
The closing will be scheduled on or before the closing date specified in the Residential Sales
Contract (your offer to the seller). It will be held at the your lending company, a title company or a
lawyers office.
The Closing Process
The closing is the point where the ownership of the property is transferred from the seller to the
buyer in exchange for the sale price. Two main things happen at the closing. All promises made by
both parties in the Residential Sales Contract (your offer to the seller) must be fulfilled. Your
mortgage loan is finalized and the money is transferred.
The closing should take around 1 hour to review and complete the paperwork. The closing agent will
review the settlement statement that details what the seller and you owe, who you owe, and what you
may be owed by the seller. The items could include transfer taxes, real estate taxes, prorated
heating fuel, and even prorated rent if part of the property was leased to another and the rent was
paid in advance.
After you walk out of the closing as the new owner of the property take some time to celebrate. This
is a major purchase and can be stressful in even the best situations. Celebrate your success and
your new home.
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www.greaterpeoriahomes.com
BUYERS GUIDE
Sponsored by Dave McMillin, Jim Maloof/Realtor®, East Peoria, IL
Copyright© 2007-2008 Greater Peoria Homes
Copyright© 2007-2008 Greater Peoria Homes
LINKS FOR BUYERS
Your Illinois Home: Buying and Selling a Home in Illinois
Free Buyer's Pamphlets: Lots of Information about buying a home
Great Schools: Information on schools
HUD: U.S.Dept of Housing and Urban Development - buying a house
VA: Veteran's information including housing
IRS: First Time Home Buyers information
IRS 2: IRS - Buying a home
Radon: Radon information
Lead: National Lead Center
Mold and Mildew: PDF file on Mold and Mildew
Wells & Septics: Well and septic systems maintenance
Water System Council: More information on wells and septic systems
Sex Offenders: National website of sex offenders
Free Buyer's Pamphlets: Lots of Information about buying a home
Great Schools: Information on schools
HUD: U.S.Dept of Housing and Urban Development - buying a house
VA: Veteran's information including housing
IRS: First Time Home Buyers information
IRS 2: IRS - Buying a home
Radon: Radon information
Lead: National Lead Center
Mold and Mildew: PDF file on Mold and Mildew
Wells & Septics: Well and septic systems maintenance
Water System Council: More information on wells and septic systems
Sex Offenders: National website of sex offenders
Buying a Home in the Peoria, Illinois Area: