What to Expect When Closing on a Home in San Antonio

Closing on a home in San Antonio is an exciting milestone, but it involves several important steps to ensure a smooth and successful process. Here’s a comprehensive guide to help you understand what to expect and how to prepare for closing day.

1. Final Walk-Through of the Property

Why It’s Important:
The final walk-through allows you to ensure the home is in the agreed-upon condition before closing. This is your chance to confirm that any repairs have been completed and that the property is ready for move-in.

What to Do:

• Inspect Repairs: Check that any repairs requested after the inspection have been completed satisfactorily.
• Verify Included Items: Confirm that appliances, fixtures, and other items included in the sale are still present and in working order.
• Check for Damage: Make sure there’s no new damage to the property since your last visit.

Tip: Schedule the walk-through a day or two before closing to allow time for addressing any last-minute issues.

2. Review Closing Disclosure

Why It’s Important:
The Closing Disclosure outlines the final details of your mortgage loan, including your loan terms, monthly payments, and closing costs. By law, your lender must provide this document at least three business days before closing.

What to Look For:

• Loan Terms: Verify that the interest rate, loan amount, and monthly payments match what was previously discussed.
• Closing Costs: Double-check all fees and costs associated with the transaction.
• Cash to Close: Confirm the total amount you’ll need to bring to closing, including down payment and closing costs.

Tip: Review this document carefully, and reach out to your lender or Realtor if you have questions about any fees or terms.

3. Prepare Funds for Closing

Why It’s Important:
You’ll need to bring funds to cover the down payment, closing costs, and any additional fees required at closing. This amount is typically specified in your Closing Disclosure.

How to Prepare:

• Wire Transfer: Most title companies in San Antonio require a wire transfer for large payments. Be sure to arrange this with your bank in advance.
• Confirm Amount and Timing: Check the exact amount and timing with your title company to avoid any delays on closing day.

Tip: Watch out for wire fraud scams; always confirm wire transfer details directly with your title company.

4. Gather Necessary Documents

Why It’s Important:
Having all the required documents organized and ready will help the closing process go smoothly. The title company and lender will require specific paperwork to finalize the transaction.

Documents You May Need:

• Photo ID: Bring a government-issued ID for verification.
• Proof of Homeowners Insurance: Most lenders require proof of insurance before closing.
• Final Purchase Agreement: While the title company will have this, it’s helpful to have a copy for your reference.
• Any Additional Lender-Requested Documents: Your lender may request specific documents, so check with them beforehand.

Tip: Double-check with your Realtor or title company for any additional documents you may need to bring.

5. Meet with the Title Company

Why It’s Important:
The title company facilitates the closing process, verifies all paperwork, and ensures a clear title transfer. This meeting is where you’ll officially sign the paperwork and finalize the purchase.

What to Expect:

• Signing Documents: Be prepared to sign several documents, including the loan agreement, deed of trust, and closing statement.
• Title Transfer: The title company will verify that the property title is clear and transfer ownership to you.
• Disbursement of Funds: The title company will handle the disbursement of funds to all relevant parties, including the seller, lender, and any service providers.

Tip: Ask your Realtor to accompany you to closing to answer any last-minute questions that may arise.

6. Review and Sign Loan Documents

Why It’s Important:
The loan documents you sign are legally binding, so it’s important to read them carefully and understand the terms before signing.

Key Documents:

• Promissory Note: This document outlines the terms of your loan and your obligation to repay it.
• Deed of Trust: This document secures the lender’s interest in the property until the loan is repaid.
• Closing Statement (HUD-1): This statement details all costs associated with the transaction.

Tip: Ask your lender or title agent to explain any terms or clauses you’re unsure about before signing.

7. Receive the Keys to Your New Home

Why It’s Important:
Once all documents are signed and funds are disbursed, the transaction is complete, and you’ll officially own the property.

What to Expect:

• Key Handover: The seller’s agent or the title company will usually give you the keys, garage remotes, and any security codes for the property.
• Welcome Packet: Some sellers leave a welcome packet with manuals for appliances, utility information, and contact numbers for neighborhood resources.

Tip: Take some time to inspect the property after receiving the keys to ensure everything is as expected.

8. Update Utilities and Services

Why It’s Important:
To ensure a smooth transition, set up utility services in your name for the move-in date, and inform service providers of your new address.

Utilities to Transfer:

• Electricity and Gas: Contact CPS Energy to set up or transfer services.
• Water: San Antonio Water System (SAWS) handles water services in most areas.
• Trash and Recycling: Contact the City of San Antonio or your HOA if they handle these services.
• Internet and Cable: Call your preferred provider to arrange service installation.

Tip: Schedule these transfers before closing to avoid any service interruptions when you move in.

9. Secure Homeowners Insurance and Update Your Address

Why It’s Important:
Homeowners insurance protects your investment, and updating your address ensures you receive important documents related to your new home.

Steps to Take:

• Insurance: Update your homeowners insurance to take effect on the day you close on the property.
• Address Change: Submit a change of address with the U.S. Postal Service, update your bank and employer records, and notify any subscriptions or memberships.

Tip: Many insurance companies offer discounts for bundling home and auto insurance, so ask about potential savings.

10. Celebrate Your New Home!

Why It’s Important:
After weeks of planning and preparation, you’re finally a homeowner. Take a moment to celebrate this milestone and start planning your move.

What to Do Next:

• Plan Your Move: Schedule a moving date, whether with movers or a DIY approach.
• Meet Your Neighbors: San Antonio’s communities are known for their friendliness, so introduce yourself to neighbors as you settle in.
• Enjoy Your Space: Begin personalizing your home with furniture, decor, and any improvements you’ve envisioned.

Tip: Take time to relax and enjoy this exciting new chapter in your life!

Closing Costs to Expect in San Antonio

In San Antonio, closing costs typically range from 2% to 5% of the home’s purchase price. These can include:

• Loan Origination Fees: Charges for processing the loan, typically 0.5%-1% of the loan amount.
• Appraisal and Inspection Fees: Costs associated with verifying the property’s value and condition.
• Title Insurance: Covers any potential issues with the title, protecting you and the lender.
• Recording Fees: Paid to the county for recording the sale of the property.
• Escrow Fees: Title company fees for managing funds and documentation during closing.

Your lender or Realtor can give you a more precise estimate based on your specific transaction.

Conclusion

Closing on a home in San Antonio is a detailed process, but knowing what to expect can help it go smoothly. By preparing for the final steps, reviewing documents carefully, and working closely with your Realtor, you can approach closing day with confidence.

If you’re ready to buy a home in San Antonio or have questions about the closing process, contact Brad Burnes, a local Realtor who can guide you every step of the way. Brad’s experience with the San Antonio market will ensure a smooth transition to homeownership. Reach out to Brad today to start your home-buying journey!