Tips for Dealing with the Post-Closing and Move-In Madness of Your Home Purchase

 

Once the closing is finalized and all funds are adequately disbursed, you are technically the owner of the property.  You are free to do whatever you wish to the property, as long as it doesn’t conflict with local zoning restrictions.

The official part actually comes when the deed and mortgage are recorded at the county records office.  Legally, however, the closing is consummated as soon as the transaction and settlement statements are signed, and keys and funds are exchanged.

For first-time homebuyers, it may take some time to absorb this new reality.  You may have given this whole adventure some thought when you started, but from the moment the ink dried on the sales contract the pace quickened dramatically.  In many cases, the day before and of the closing was simply one jumble of nerves.

Before the hectic day of closing arrives, you should begin planning for your possession of and move into the property.  Specifically, homebuyers should follow a few important tips when preparing for the closing and move-in:

• Give yourself time for the closing
• Give yourself time after the closing
• Prepare for the financial responsibilities

Give Yourself Time for the Closing

If there is one planning item that should guide you as you prepare to move into the property, it is that you should give yourself plenty of time.  Avoid trying to meet a tight deadline for moving out.

There are many things that can and do go wrong during the final days of the purchase transaction, all of which can delay or even cancel the closing and possession.  Some of these events include the following:

• Mortgage loan problems or delays
• Insufficient funds to meet all requirements
• Additional property problems arise
• Accident postpones seller, buyer or attorney from closing
• Seller needs additional time to move out
• Property is filthy and needs major cleaning

In many ways, buying a home is similar to having a grand wedding.  You can schedule everything, including the honeymoon, tightly and eventually drive yourself nuts with the stress — so much so that you are unable to appreciate the event itself.  The smarter move is to plan in some buffer time to absorb possible problems and contingencies.

Seller Delays

In some cases, the seller may request a delay in moving out of the home for one reason or another.  If this does occur, the seller is at your mercy.

If you agree, the attorneys will normally write the delay into the contract (along with a firm deadline) and charge the seller a daily rent.

Most of the time, however, the seller will merely schedule the closing for a later time.  This delay would then be incorporated into the contract.

Property Problems

Buyer beware: real estate rarely offers refunds or reimbursements.

After the closing and property transfer, there is little you can do about compensation (from the seller) for subsequent problems with the property.  This is why you must arrange a thorough inspection of the property by an experienced property inspector.  Any problems found by the inspector can be resolved before the closing and possession.

Your final inspection is normally only perfunctory.  The seller is only responsible for those repairs indicated in the sales contract and accepted from the property inspection.  If you find additional problems during their final walk-through that were there from the beginning of the purchase, the seller is normally not responsible and you cannot back out with losing the earnest money deposit.

The limited protection you do have regards major deficiencies that the seller knew but did not disclose.  For example, most states now require all purchase contracts to contain a rider with specific disclosures about lead content, pest infestation and other major defects.

Even with these protections, however, compensation or relief can still be difficult to achieve.  It can honestly take years for a cheated buyer to get any judgments against the seller, and even more time to actually get compensation.

Don’t burn your bridges with your landlord

If you are renting your current residence, try to stay on good terms with your landlord.  You may find that you will need an extension on your lease.  Worse yet, you may need to maintain your lease if the purchase falls through at the last minute.

Also, try not to schedule your closing and move for the very last day of the rental month.  You may save a few dollars, but you are also risking severe complications for those few dollars.

Again, try to give yourself time, especially if you will be responsible for cleaning the apartment and making small repairs that may prove necessary to redeem your security deposit.

If you feel the need to disregard this advice, then we recommend that you stay on top of all the details with your attorney, real estate agent and lender.  And make sure you have the movers or moving truck reserved at least two weeks ahead of time.

Give Yourself Time After the Closing

First-time homebuyers should schedule at least three to seven days after the closing for the move, with the actual moving coming at the end.

You will need this time to clean your current residence, if necessary.  You will also need this time to clean and prepare your new home.  Windows need to be washed, lawns need to be mowed and floors need to be scrubbed.  There are many tasks that need to be done, and the best time to do it is when the home is empty.

If the house contains carpeting, it’s a good idea to have them thoroughly cleaned.  You will discover that the odor of the house tends to settle with the carpeting.  You may also need to apply a fresh coat of paint or new wallpaper in certain rooms, as well as make any number of minor improvements throughout your new home.

Yes, you may have to live out of boxes during this transition period.  But the fact is that you will have to whether you schedule this time or not.  By anticipating potential time needs, you will be able to face them with less stress.

This period is also a good time to recuperate from the whole purchase experience, especially if the process or closing were hectic.

Packing for the move

Try not to begin packing until the closing is guaranteed.  This is a difficult temptation for some homebuyers.  However, it is best to hold off with packing your belongings until the closing has been scheduled and confirmed by all parties.

If you have a complicated purchase or mortgage financing situation, then you should wait until after the closing to begin the bulk of your packing.  Complicated transactions are the ones most prone to delays and possible cancellations.

Once you do begin packing, try to reserve your most immediate needs (dishes, flatware, necessary work clothes, etc.) for last.  It makes it easier to find them, as you will probably need to access them first.  Also, make sure to clearly mark as fragile all boxes that contain fragile items.

Before you begin packing, obtain a floor sketch of the property.  The lender should be able to fax you a copy from the appraisal report.  Try to plan into which room, of the new house, all items should be moved.

As you pack items into boxes, mark the boxes with the destination room (den, kitchen, master bedroom, etc.) and floor (basement, first floor, attic, etc.) in the new house.  This will save you time unpacking and settling in, as well as aggravation with trying to find specific items.

Preparing movers

Whether you are using professional movers or recruiting friends and relatives, you need to schedule your actual move date.  If you are relying on friends and relatives, you will normally be limited to weekends, when they will be most available

Professional movers will require reservations and advanced confirmation.  They do allow some flexibility in rescheduling, but again, try to give schedule yourself some buffer time to deal with unexpected delays.

If you are simply renting the moving vehicles and trailers, you will need to reserve those ahead of time as well.  Also, take the time to actually test trailer hitches at the rental office.  They can sometimes be complicated to attach and detach.

Change of address

A new address may entail several government requirements.  Depending on your locale, you may have to arrange change-of-address notifications for several agencies:

• • Post office (to forward mail)
  • Driver’s license office
  • Vehicle license service
  • Employer, banks and institutions
  • Friends & family who really need to know

Prepare for Financial Responsibilities

Most mortgage payments are due at the first of the month.  Many new buyers will find that their first one may not be due for 30 to 45 days, depending on the loan program and closing date.

If you have not received a coupon book or billing statement by the due date indicated at the time of closing, it does not mean that you do not have to make a payment.  Instead, you must use the first payment letter provided to you at the closing.

The first payment letter indicates the due date, payment amount and mailing address for your first mortgage and escrow payment.  In some cases, the lender relies on this first payment letter to activate the mortgage servicing and transmit the coupon book.

Go to next HomeBuyer Guide chapter: “18. Monthly Payments”