Step 3: Closing the deal!

Now it’s time to take action! To get follow-up on the inspection, select an escrow company, close, and get insurance, take the following steps:

Carefully review the results of the inspection. Assuming you included the appropriate conditions in your purchase offer, ask the seller to make necessary repairs before you close, renegotiate price or other terms, or walk away from the deal, making sure to reclaim your earnest money.
Before you close, do a final walkthrough (take your inspector with you) to ensure that the home is in the state that you expect it to be in.

Ideally, you should go with an escrow company of your own choosing, not of the listing agent’s choosing. This is your right. You should search for an escrow company the same way you searched for realtors and lenders. Use your common sense, word of mouth, and recommendations to select a reputable company.
Ask for a fee schedule that explains all of the fees associated with escrow you will be required to pay. Carefully review this list, making sure you understand these fees. (You can also ask for ways to reduce these fees.) Hold the company to these fees if they try to squeeze you for additional fees not listed in their fee schedule.

Prior to closing, check with your agent to make sure you will have the money needed to close and that it is in the right form. (Personal checks are often not acceptable for the down payment.)
Typically, the fees for your awyer, closing costs, and down payment will need to be paid at closing, along with your mortgage amount.
At closing, review documents with your agent or lawyer, making sure you understand and agree with each document before you sign it.

Your lender requires that you have insurance. Get casualty insurance (known alternately as homeowners insurance or fire insurance).
If you are buying a condo, look into what the condominium association does and does not cover. You may need to take out a separate policy to cover personal property, which is rarely accounted for under an association’s plan.
Get a “full replacement cost” policy, and be prepared to provide the insurance company with a copy of your appraisal to help them determine the full replacement cost of your home. Be sure you determine what the “full replacement cost” policy does or doesn’t cover (e.g., land) and go over these details with your insurance agency.
Choose the highest deductible you’re comfortable with, to save money. A policy with a $1,000 deductible is a lot cheaper than one with a deductible of $250.
Get an excess liability policy; a $1,000,000 policy is a good idea (and not that expensive).

Don’t forget to work out utilities with the seller to ensure you have electricity when you move in to your new home.

You’ve done it! You are a homeowner. Congratulations! We wish you many happy years in your new home!

Before you close, do a final walk-through (take your inspector with you) to ensure that the home is in the state that you expect it to be in and that any agreed-upon repairs were done, and done well.
It’s best that you, and not your listing agent, choose the escrow company. This is your right. Be sure that ask for, review, understand, and try to minimize any fees the escrow company charges. These fees can add up, especially if you are not monitoring them.
Lenders require home insurance. Buy casualty insurance, a “full replacement cost” policy; and get an excess liability policy -- $1,000,000 is a good amount (this isn’t that expensive and can save you lots of money in the case of an accident at your home).
You can’t usually use personal checks for your down payment and other costs at closing. Be sure you come prepared with the correct form of payment, e.g., a bank check. Work with your real estate agent or lawyer to make sure you are prepared.
Talk to the seller to arrange for utilities to be continued so that you don’t move into a home without utilities and don’t have to pay to have them reconnected.

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