Real estate closing series - Part 2 After attorney review period is over

August 26, 8:55 AMChicago Real Estate ExaminerSara Bonert

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Part One - What to do after offer acceptance

You lawyer has verified that everything is order and both sides are in agreement on the terms of the sale.  IMMEDIATEDLY start working on financing.  While it may seem like closing is a long time away, you will need this time to finalize things with your Lender.  You will be required to submit a lot of paperwork and income verification, get this in as soon as you can.  The sooner you secure your funds, the smoother closing day can go.  Be ready to commit time to this process, the beginning of it can be stressful, especially if you have never gone through the process before.  Hang in there, once you select and lock your loan, it gets easier. 

The next thing you should be shopping for is insurance.  Your mortgage company wants to know that the home they are financing is covered to help mitigate their risk.  If you are buying a home, they will require proof of your policy before closing.  If you are buying a condo, you are covered by the building’s policy, which you are paying for as part of your monthly Home Owner Association dues. 

Tip #1 – If you are buying a condo, it is highly recommended that you also buy condo content insurance.  This will cover what they call “dry wall in”.  Let’s say you had a pipe freezes and bursts (fyi- this CAN happen in brand new buildings) and water gets in your walls and floor and ruins your furniture.  Your building policy covers anything in the actual walls.  So this policy will cover the pipe being fixed and all the walls and floor or ceiling that the pipe effected.  Your personal policy will cover your personal possessions.  The minute you get the keys, you own the building, and you should have this insurance as a calamity is just as likely to happen the first day of ownership as the 100^th.  

Tip #2 – If you are requiring the builder or homeowner to do any work to the home before you move in, make sure you stay on the responsible party to get it done.  The lender will require that the home is “finished” before moving in, so if something isn’t done, it can delay closing.  Regualrly check in at least weekly, and immediately follow up when you are told a particular event should be completed.