What Documents You Need to Sign When Closing on Your Home

What Documents Will You Need to Sign When Closing on Your Home?

Sign on the dotted line. Or, in the case of a house closing, sign on the 500 different dotted lines, one after the other, with a lunch break in between to rest your hands.

Closing on a home is hard. For better or for worse, there are numerous documents that you need to sign off on and read through. While some documents can be handled in the weeks preceding the close, others must be finalized in the final closing proceedings.

The below is one part of your very own home buyers’ document guide. What do you need to close and how do you prepare to make it as manageable as possible?

Mans hands signing a document

Documents to Sign for Home Buyers

So what are the documents to sign for home buyers? There are at least five major documents required from buyers during the closing process.

  • The Deed and Bill of Sale:

These two documents are grouped into one because they are necessary for virtually every home purchase. The deed is the document confirming the home and is public information after the transfer of ownership. The bill of sale confirms the sale of the home and its contents.

  • Fund verification:

Whether approved from a lender or present as a briefcase of cash, you need to have the money. This document will verify the presence of the funds in whatever form they take, confirming the amount due in the close.

  • Trustee Designation:

Also known as a revocable living trust, this document confirms the name of the trust/individual who will be the owner of the property in case of your passing.

  • Certificate of Occupancy:

This document conforms to the state of Florida that the home has received all applicable codes and has achieved proper building compliance.

  • Insurance Disclosures:

What is covered in the home and to what degree? The home buyers will firmly validate all insurance coverage on the home upon closing.

  • Appraisal Acknowledgement:

The appraisal document comes in various forms, but it is typically designed to confirm that the home buyer understands the valuation of the home. It designated the party who stated the value. The document is largely a formality, but it helps confirm that the buyer understands the home’s value.

The above list is by no means fully comprehensive. The requirements will vary from situation to situation. FHA and HOA requirements may change what is needed. Overall, the above documents cover what the majority of home buyers will need when closing on a home.

Clasped hands in front of a house

Preparing for Closing Day

If you want to know how to prepare when closing on your home, you need to make sure every document is accounted for prior to closing. Is it ready to be finalized? Are you comfortable signing?

Of course, not every document is required for every situation. You should absolutely have a checklist, verified from your agent, which covers all necessary documentation. You already have enough to deal with to add needless paperwork to your workload.

The documents you need may vary the most based on if you close with cash or a loan. There are also other factors to consider, such as living will documentation. Purchases requiring a loan will demand various insurance coverages as well as inspection reports. If you are paying cash, you don’t necessarily need pest, termite, and mold inspections. If you are working with a lender, these must be approved and verified upon closing at the latest.

Ultimately, you need a professional agent who understands all the necessary moving parts of the closing procedure. You don’t want to have to wait an additional few weeks for other parties to pull their weight, supply the proper paperwork, “order” certain things to be done, and more. Your future is waiting. Contact our team today to get started.