9 Things to Do Before Closing on a House [VIDEO]

Closing on your first home can feel overwhelming, but it doesn't have to be. Whether you're working with a traditional lender or exploring programs like TruePath Mortgage, there are important steps every homebuyer needs to complete before closing day. 

Understanding these steps ahead of time helps you stay organized, avoid delays, and move another step closer toward homeownership.

Your Pre-Closing Timeline: What to Expect

Here's when to tackle each essential task before closing day:

30-45 days before closing:

• Apply for your mortgage loan: Get your financing process started early
• Shop for homeowner's insurance: Compare rates while you have time

10-14 days before closing:

• Schedule your home inspection: Catch any issues while you can still negotiate repairs
• Get your home appraisal: Make sure the home's value matches your offer

1 week before closing:

• Transfer utilities to your name: Have everything ready for move-in day
• Prepare your closing costs: Know exactly what you'll need to pay

2-3 days before closing:

• Complete your final walk-through: Everything should be as promised
• Examine the title: Ensure clear ownership of your new home

Closing day:

• Sign your documents and get your keys: You're officially a homeowner!

Now let's walk through each step so you know exactly what to expect.

1. Apply for a Loan

If you already have pre-approval, now is the time to apply for a mortgage loan. If you did not obtain pre-approval, you’ll want to compare rates from mortgage lenders to find the best loan for your situation. Consider exploring first-time homebuyer programs that offer many benefits and support.

Jen LaCroix, Open Market Lending Manager with our lending program, has some tips on how to prepare when working with your loan officer:

"The biggest holdup to closing is our clients not getting us things as quickly as we need them or not understanding what they're asked for. So if you have questions, make sure you have open communication with your loan officer," Jen says.

Gather your financial documents early, including pay stubs, tax returns, and bank statements. This helps your loan officer process your application faster and keeps you on track for your closing date.

2. Prepare to Pay Closing Costs

A mortgage isn’t the only payment you’ll have to make to buy your home. You will also need to pay closing costs. These typically range from 26% of your home's purchase price and include fees for the appraisal, title search, attorney fees, and loan origination. You should also be ready to pay other fees that come with closing, such as a Homeowner’s Association fee or property taxes.

Ask your lender for a Closing Disclosure at least three days before closing. This document breaks down all your costs so there are no surprises on closing day.

3. Examine the Title

The last thing you want to hear when you buy a house is that the seller doesn’t actually own it. This may sound strange, but it does happen. That’s why it’s important to have the title of your home examined. A title company will make sure that no one else can claim they have ownership of your home and that there are no outstanding liens or legal issues.

4. Get a Home Appraisal

Before you close the deal, your lender will hire an unbiased professional to determine the value of the home. If the home appraises for at least what you are paying for it, the lender will be more confident in lending you the money because they know the collateral is the same or greater value than the loan. Conversely, this can also help protect buyers from overpaying.

If the appraisal comes in lower than your offer price, you may need to renegotiate with the seller, bring additional cash to closing, or explore other options with your lender. Understanding how to compare mortgages can help you make the best financial decision.

5. Schedule a Home Inspection

Most lenders will require an inspection, but you’ll want one anyway to check if there are any issues with the home before you move in. If the inspector finds any structural issues or problems with the home’s amenities, you may be able to negotiate to have the seller fix them. This is especially true if they did not tell you about the issue before you made an offer.

Schedule your inspection within a few days of your offer being accepted. This gives you time to negotiate repairs if needed. Watch out for these home inspection deal breakers and learn what might fail a home inspection so you know what to expect.

6. Get Homeowner’s Insurance

Before you close on your home, you will be required to show proof of homeowner’s insurance. This is insurance that helps pay for damages to your home. Homeowner’s insurance usually covers interior damage, exterior damage, loss of personal belongings, and injury that occurs on the property.

Start shopping for homeowner's insurance as soon as your offer is accepted. Compare quotes from multiple providers to find the best coverage at the most affordable rate. Your insurance agent can help you determine the right amount of coverage for your specific situation. 

7. Transfer Utilities

Moving into a new home is exciting! But moving into a new home and learning that the water doesn’t work is much less exciting. Before you move in, call the utility companies in your area to transfer the gas, water, and electricity into your name.

Contact utility companies at least one week before your move-in date. Some companies require several days notice, especially during busy seasons. Don't forget about internet, cable, and trash services, too.

8. Take a Final Walk-Through

In the days before you close on your home, you will be allowed a final walk-through. 

During your walk-through, test all appliances, check that agreed-upon repairs were completed, and verify that the sellers haven't removed anything that was supposed to stay with the house. If you find problems, address them with your real estate agent before closing.

This is your last opportunity to check that there are no issues or damages and that the home includes everything promised in your agreement.

9. Sign Mortgage Documents

Now, it’s time for the big day! When you go to sign the mortgage documents, you will need to bring a cashier’s check to pay closing costs, along with a photo ID. After you sign the documents, it’s time to celebrate! You are now officially a homeowner.

The closing process typically takes 1-2 hours. Don't hesitate to ask questions about any documents you're signing. This is your investment, and you have the right to understand every detail.

How Twin Cities Habitat Makes Closing Easier

We understand that closing on your first home can feel overwhelming. That's why we've designed our homeownership programs to support you every step of the way.

Streamlined Process with TruePath Mortgage

TruePath Mortgage, our wholly-owned nonprofit mortgage company, simplifies the lending process for first-time homebuyers. Our team works directly with you to:

• Provide competitive interest rates
• Offer clear communication throughout the loan process
• Reduce paperwork confusion with dedicated support
• Help you understand each step before closing

Financial Coaching Support

Beyond just lending, we provide financial coaching and counseling to help you:

• Prepare for homeownership costs
• Build and maintain good credit
• Create a sustainable budget for your new home
• Understand closing costs and what to expect

When you buy with Twin Cities Habitat, you join a community of homeowners who understand your journey. You don't have to navigate this process alone—we're here to help you succeed.