What Happens After Closing?
Your what-to-expect guide after the big day.
It’s an Exciting Time!
We love to see the moment you know everything has been finalized and you have officially closed on your purchase or sale. It’s something that truly will never get old to us. As we sign the last documents and get ready to stand up, we often hear, “so, what happens now?” It’s a great question and one we want more people to know the answer to, before ever sitting down at the closing table. When you close, we want you to be able to say, “I know what happens now.”
#1: Get Your Paperwork
Upon closing, you will receive a hefty amount of paperwork, which will include copies of everything you signed along with your title paperwork. The recorded deed will come in the mail to the address listed on the deed as Certificate of Residence up to 3 months from closing. Every county has a different recording process and some take longer than others.
Some closing companies will utilize a digital service to send your documents to you as another way for you to keep track of them. However, this paperwork now becomes your responsibility to maintain and organize. When you close with Universal, we provide you with a homeowner binder—we suggest you put all of your important closing documents in there. If you do receive digital or scanned documents, it’s a great idea to store these on a flash drive or external hard drive you can keep safe and always have access to.
This is also the time you can expect to get the keys to your new home, buyers! For sellers, there’s not too much to worry about after the paperwork process besides ensuring that you receive your funds from the sale—typically mailed and in check form (some companies will offer direct wire transfers). As wire fraud continues to become increasingly common, we highly suggest going the check route.
#2: Make Your First Mortgage Payment
After the euphoria of closing wears off, you’ll start thinking about making your first mortgage payment. Oftentimes, the first mortgage payment is included in the closing costs or process for a purchase (this applies to buyers). So, you will most likely not have a mortgage payment due right away. This first month is when you will receive guidance from the mortgage company on how to create an online account and set up automatic payments if desired. Your loan officer contact and mortgage broker contact should be listed in your ALTA settlement statement from closing. If you have trouble reaching them, you can reach out to the Universal team for further insight.
#3: Property Taxes
At closing, property taxes are prorated between the buyer and seller based on the occupancy time in the home. Be aware of all upcoming tax dates and call us if they have any questions. When obtaining a mortgage, companies will often bundle your yearly taxes in with your mortgage payment. If this is the case for you, you should get a tax bill in the mail in the spring and in the fall with a stamp on it saying "Paid from Escrow.” If it doesn't have that stamp, then send a copy of your tax bill to your lender and/or us to get it squared away. If your tax bills are maintained in a mortgage escrow, you'll get an annual Escrow Review Statement detailing what taxes were held and paid in escrow over the past year and if there will be any changes to your payment for the following year.
If you are purchasing a new construction, be sure to call your local tax assessment office after closing. Depending on the date of your closing and how far along the construction is when you close, there may be interim taxes. If you have any questions about interim taxes, give us a call and our in-office tax guru can help you out.
#4: Utilities
After closing is the perfect time to get utilities all set up for your new property. For sellers, this can look like transferring accounts to the new owner’s name and/or other processes for transfer. It’s important to ensure your utility companies are aware a sale has occurred and to begin the transfer process. The official transfers will not be completed in electric, internet, or cable until the buyer calls in, but it’s always smart for the sellers to do the extra step and confirm.
For buyers, you will need to make sure you’re prepared for everything your new property requires—such as electricity, water, gas, sewer, trash, and phone or internet service. At Universal, we call to get final water and sewer readings which typically initiates the transfer of accounts; however, you should certainly still call. We encourage you to prepare your utilities in advance as there is no guarantee that the utilities will be available immediately. Some companies can activate utilities rather quickly, while sometimes there can be up to a few weeks delay. Either way, you can expect to get this all worked out before and after closing.
#5: Watch Out for Marketing Solicitations
After closing, it’s important to be aware of marketing solicitations. As you start to settle into your new home, you will start to see letters coming to your new address that appear like legitimate business. These letters often say there is some urgent matter with your mortgage or that they have been trying to reach you. These letters are not technically ‘scams’ but they are marketing solicitations trying to get you to buy into additional services not required for your mortgage. Without doubt, you will also receive a really official letter from your local courthouse saying you need to send in a check in order to receive a copy of your deed. You do not need to do this. Universal will mail the buyers the original deed and provide additional copies free of charge. All of these tactics are designed to instill a sense of urgency in new homeowners and often do look like official business. You can happily ignore these and focus on information from your mortgage company or trusted sources of communication regarding your property.
Sellers may also see some similar types of solicitations shortly after closing as well. The reason this happens is because it is required for some public records to be filed for a mortgage. From these records, legitimate businesses utilize contact information to send these solicitation letters. You are welcome to explore any services offered, but also realize—it’s NOT required for any reason. If you have any questions about items you’ve received in the mail regarding your closed transaction, don’t hesitate to reach out to us. We’re always happy to take a look and help you with next steps.
#6: Changing Your Deets
Another item to complete on your post-closing to-do list is updating all of your contact information both with the postal service and with the state. This applies to both buyers and sellers, even more so if you as the seller were using your property as your primary address. You can easily update your primary address through the Postal Service website and for most states, you can also start this process online as well, unless you need a new driver’s license picture due to relocating to a new state. In both cases, you can also take care of these must-dos in person by visiting your local DMV and post office to complete the updates to your contact information. This is also a great time to update your information with employers, banks, loan companies, and any other service providers that rely on updated information for your accounts. You may also need to/want to consider updating your voter registration information as well, which can also be done through the USPS website.
You’re All Clear to Close
Now that you know exactly what to expect after you close on your sale or purchase, you can head to the closing table with more confidence. Our team is always here to help guide you before, during, and after your real estate transaction.