This is the last thing to do. You've found your dream home. You are happy with the way your mortgage is set up. Now is the time to make the deal official. Closing is the process of meeting all of the legal and financial obligations that were outlined in your "Offer to Purchase."
There are a lot of things to remember if you want the closing to go well. Here's how to do it:
- Ask your lawyer to look into the title.
- Accept the offer by a certain date and meet all of its terms.
- Give your lawyer a copy of your purchase offer and have him or her read over the terms and conditions.
- A survey of the land is done.
- Do all the different inspections, such as a home inspection.
Your attorney will look into taxes and liens.
Make sure you've paid everything you need to, including a deposit.
- Make sure all of your property taxes are paid (lawyer).
- Finish all the paperwork for your mortgage (lawyer).
- Make plans for your new home to be hooked up to utilities.
- Once you've done all of the above, you'll need to sign a check and pay the rest of the legal fees.
- Have your lawyer write up a statement of adjustment to confirm the purchase price, the rest of the deposit, and any other changes.
Closing Day
Today is the day you get the keys to our new house and move in. But Closing Day is a lot more than that.
- You pay all legal fees, disbursements, and land transfer taxes.
- Your mortgage money comes from your lender, who gives it to your lawyer.
- You give your lawyer the rest of the purchase price.
Definition of Closing Day
Changes and Costs of Closing
You have to pay fees to the Registry Office and Land Transfer Taxes in order to register a deed.
Taxes on the sale of land
Usually, you or your lawyer pay a land transfer tax to the province when you register your transfer and deed. This tax is figured out as a certain percentage of the price. If you are buying a new home for the first time, you get a break.
Right to look around
Most of the time, the seller is not required to let you check out the property before closing. But sometimes this can be worked out between you and the seller, and you should check out the property if you can.
Choose a mortgage lender with as much care as you would a business partner. When times are hard and you need a lender to stick with you, you will quickly find out if they are someone you would want in a foxhole with you.
The last thing you want is a lender who cares more about numbers than how well you've paid in the past.
Build a relationship with your lender and keep them up to date in case you need to change the way your mortgage is set up. In hard times, it can be very helpful to have a lender as a business partner.
