The Closing Process: You've made your offer and it has been accepted. There are still things that need to be accomplished between now and the closing. 

Homwowners Insurance: All lenders require homeowners insurance to be in place prior to closing. They also require that the insurance should be paid a year in advance. This is also one of the major expenses associated with your closing costs.

The cost of the policy is based on the risk factor in the aea you live in, age of the home, type of construction and the homes appraised value. It is highly recommended that you shop around for the  best deal possible. One thing you should make sure of is that you buy a policy that has a built in inflation factor that will cover future replacement costs of your home should you have to rebuild it in the event of a disaster. 

Once your policy is set up you can pay the premium directly to the insurance company or pay it at closing. However you  pay it  make sure  the lender has a copy of the insurance binder with a declaration page, the date the policy took effect and a receipt showing the policy was paid for.  The insurance company also normally faxes a copy of the policy to the lender.

Home Inspection: When you made your offer one of the contingencies was a home inspection. This should be done as soon as possible after the offer was accepted since there is normally a time limit on getting the inspection done. It is highly recommended that you get an inspection since no matter how many times you walk through the house there will always be something that you may miss. This is where the home inspector comes in. A good home inspector will give you the information that will either set your mind at ease, send you back to the negotiating table, or out looking at other homes. In any event a home ispector will provide you with information that is critical on whether you continue on to closing or not.  By not going with a home inspection you risk the possibility of having expensive home repairs after moving into your home.

Ask your broker or agent if they have any suggestions on a home inspector. Most brokers or agents have a list of home inspectors that they normally use. It is recommended that you check out any home inspector you are considering with the "American Society of Home Inspectors (ASHI)". Its members must abide by a certain code of conduct and have attained a certain level of training and experience. Make sure  whoever you hire is a member of this organization.

Make sure that any home inspector you hire carries error and omissions insurance.  If something big is missed during the inspection this policy will help make it right later on when it is found.

Find out what is covered on the inspection. Ask for a checklist upfront so you can review it and get an idea of what the inspection will cover. Also ask if you can go along on the inspection. If the answer is no it is suggested you find another inspector.

Ask for references. This should be a must since anyone who refuses to give references should be crossed off your list. Any professional will be happy to provide you with references. Also have your broker or agent be present at the inspection. That way if anything comes up during the inspection your broker or agent will have first hand knowledge of it.

After the home passes inspection and the appraisal comes back showing the value is there, you're ready to close. The next step is to prepare for closing costs.

Closing Costs: Closing costs are a fact of life when it comes to buying a home. They can anywhere from 2-5% of the sales price of the home and possibly more depending on the lender. Most homebuyers get the seller to pay part and sometimes all of the closing costs with the exceptions of items like homeowners insurance, property taxes, interium interest etc.... Your lender will give you a good faith estimate when you first apply for and get approved for a mortgage. 

One important thing to remember that the Good faith estimate is just that an estimate.  The HUD One form that should be provided to you three days before closing will give you the actual closing costs and what you need to bring to closing. make sure you go over this with a fine tooth comb and challenge items that seem excessive. Your broker and agent can assist you with this.

Pre-closing Walk Through: This is accomplished on the day or closing or the day before. It is recommended that you do this twice. Once five days before closing and again the day before closing. That way you can ensure that all the major systems such as plumbing, electrical, heating and air conditioning must be in working order. Take the time to test each system. If something doesn't seem right bring it up right away to the seller so it is resolved prior to closing.

If you skip this step and something happened between the home inspection and the day of closing the buyer will be responsible for any repairs.  So take your time with this and make sure the seller has taken care of all required items prior to taking possession of your home.

Closing Day: The big day finally arrives and you're ready to get the closing out of the way and move in to your home. By now you should have evrything completed and ready to sit down at the closing table. Normally it takes between an hour to an hour and a half to complete a closing if all goes smoothly.

Who Will Be There:  Normally you,  your broker or agent, your attorney, and sometimes your lender. On the sellers side the seller, their broker or agent and possibly their attorney.

What You Need To Bring: Your broker,agent or lender can assist you with this. As a minimum you need to bring the homeowners insurance policy, your drivers license and picture id along with a cashiers check if the money has not been wired in.

Also bring the HUD One form (Department of Housing and Urban Developement) that your lender provided you so you can ompare it with the obe provided at the closing. This is where most surprises show up in the form of additional  charges you were not prepared for.

During the closing examine all paperwork that you are signing and ask questions on things you don't understand. Your attorney  should take the time to explain everything fully. 

Sometimes things can go wrong at a closing. The loan that was supposedly approved wasn't because the lender and buyer couldn't come to terms on the loan.  Aother possibility is that the title search comes back with leins that were not cleared. While unlikely they do happen sometimes.

Upon completion of the closing the seller or builder will hand over the keys and a package of information they may have on the house that covers equipment, home warranty, instruction son how to operate the equipment, etc....  At this point celebration is in order since you are now the owner of your home.