This is the last part of what’s turned out to be a 7 part series. I didn’t set out to write 7, neither did I expect the posts to be so long. It’s easy to underestimate just how much preparation and work is involved in Buying a home in Iowa City. 
Even though I’ve covered a lot of ground with this series about the home buying process, I haven’t covered every nuance or every scenario that you may run into when you buy a home in Iowa City. The goal has been to cover aspects that are the same in every transaction and today I’m looking at the last 48 hours before closing.
A real estate transaction can be chopped up into segments and as real estate agents we wear many hats. For buyers it can be a bit of an emotional roller coaster with some pretty intense periods in there. This is especially true for buyers relocating to Iowa City who have a lot more than just the ins and outs of a real estate transaction to deal with. Any number of things can come up and emotions run pretty high. Fortunately, by the time you get to this point in the transaction and you’re Sale Pending, things are a lot quieter and a lot less intense. Of course I’m talking about your typical closing here. As I mentioned in the last paragraph, I’m not covering all scenarios in this series.
Reviewing the HUD-1 Settlement Statement Prior to Closing
Typically, 48 hours before you close you will get a HUD-1 Settlement Statement from your lender showing exactly how the proceeds of the sale will be distributed. 
It will show the closing costs and they should be pretty much in line with the costs shown on the GFE, (Good Faith Estimate), you received when you first spoke to the lender. It will also show how much the check needs to be for that you bring to closing. (It may need to be in the form of a Cashier’s Check, the lender will let you know if that’s the case).
The Final Walk Through
The very last thing you do before closing is the final walk through of the home. Sometimes this happens directly before closing. More often, (at least with me), it happens the day before. That way if anything does come up the seller still has time to do something about it before closing the next day. The alternative scenario of addressing problems that come up on the day of closing is way more stressful for all parties and I really like to avoid that if possible. (Not that we’re expecting anything to come up, I was just a good Girl Guide and I like to be prepared!)
What Happens on the Day of Closing
The day of closing is huge for you as a buyer since it’s the day all the documents are signed and you get the keys to your new home. 
It’s a surprisingly simple occasion considering how big a deal it is. All you need to do is show up at the closing location, which may be the Attorney’s office or the Lenders office with check in hand. This is when you get to sign the HUD Statement, the Home Loan Documents and the Mortgage Agreement. Not to mention an array of disclosure statements and other papers required by the lender. You will need to limber up your writing hand that day as there are a lot of documents to sign!
That’s it. Once you’re done signing documents the seller will sign the warranty deed to transfer the property along with a few other documents. In a transient town like Iowa City it’s not unusual for sellers not to be at closing at all. Sometimes the listing agent will have those documents signed prior to closing and bring them to give to the lender at closing. (Remember, the deal is that you give the seller x amount for the home and they give you clean title in the form of a warranty deed. And all of this happens at closing).
The entire process takes about 45 minutes and when you’re done you get the keys and the garage door opener and you’re on your way!
7 posts later you can see that there’s a lot more to buying a home in Iowa City than picking out a house and writing an offer on it. I’m hoping the one big take away for you as a buyer from this series is to recognize the benefits of personal representation when you buy a home in Iowa City. This is true if you already live in Iowa City and know the area. It’s especially true if you’re relocating to Iowa City when a (good) buyer’s agent will be of enormous benefit to you as your “eyes on the ground.”
Questions? I have answers! Whether you’re relocating to Iowa City or you already live here and are thinking about buying a home in Iowa City, I’m all about sharing information and would love to hear from you. You can call me anytime at 319-400-0268 or of course email works too.
Buying a Home in Iowa City: Step by Step Guide to the Home Buying Process
Step One: Buying a Home in Iowa City – Getting Pre-approved by a Lender
Step 2: Buying a Home in Iowa City – Your Wants Needs & Wishes List
Step 3: Buying a Home in Iowa City – Finding the Right Home
Step 4: Buying a Home in Iowa City – Writing An Offer
Step 5: Buying a Home in Iowa City – Home Inspections and Repairs
Step 6: Buying a Home in Iowa City – Preparing to Close on Your New Home
Step 7: Buying a Home in Iowa City – Closing on Your New Home
That said, I’ve only had that happen one time in the last six years so it’s not something you need to be overly concerned about.
The seller’s attorney will update the abstract. (An abstract is a document that shows the history of the property). After that’s done your attorney will prepare a title opinion / title commitment. During this part of the process any judgments or liens on the property will all need to be noted and possible issues resolved before closing.
This can be done about a week before the date you’re scheduled to close. Here in Iowa City it is typical to take possession on the same day you sign the loan documents, so the utilities should be switched to your name for that date too. This is true whether you move in or not. Once you sign the documents the house is yours and you pay for any costs incurred after that.
It typically costs less than $500 for the home inspection, radon inspection and pest inspection here in the Iowa City area. That seems like a pretty good deal for a whole lot of peace of mind!
The home inspection is a time when you as a buyer have the opportunity to find major deficiencies in the property that aren’t visible by just walking through the home. For instance problems with the foundation, the roof, the heating and cooling system, water heater, plumbing or electrical system.
Getting to Step 4 and Writing an offer is a major milestone in the home buying process. With the help of your buyer’s agent you’ve done your due diligence. You’ve viewed and researched homes in Iowa City. If you’ve got any “special requests” you’ll take care of that before Writing an offer. (I can’t tell you how often I’ve called City Building Departments to ask questions about houses before writing offers with clients). At any rate by now you feel comfortable enough to move forward and write an offer on the house you think will be the perfect fit for you and your family. If you’re relocating to Iowa City you’re probably a little nervous about this step. Change is not always easy and you have A LOT of that in your life when you’re relocating. Being prepared. That’s what it’s all about. If you know you’ve covered all you bases you’ll be fine when you get to the point of writing an offer on a home.
At the same time it needs to be appealing to the sellers. There’s a balancing act to getting this part of the process right. This is where the expertise of a (good) Realtor will come in handy. There’s much more to Writing an offer than haphazardly filling in the blanks and hoping for the best.
If you’re relocating to Iowa City this is an absolute necessity for you to maximize the use of your time here. There are MANY reasons why working with a (good) buyer’s agent is a good idea. For buyers relocating to Iowa City there is one over-riding logistical reason. It’s simply not feasible to coordinate your day properly if you have to rely on the schedules of a dozen different listing agents. Having one agent coordinate the whole shebang is simply more efficient.
