Closing on a home? Here are some tips to minimize stress.

So the house hunt is over, and you've found your dream home? Now is the time to start preparing for closing. Once you've supplied the mortgage company with the necessary paperwork (see one of my earlier blogs for details), once you've done your inspections and negotiated any repairs, it's time to start preparing for closing. Here's how to make that closing less hectic and more organized:

1. Decide on a closing date. Check with your Realtor and your mortgage professional to determine a feasible closing date when writing your offer, and work diligently to make it happen. How? Have everything your mortgage person needs before they even ask for it, and check frequently to make sure that everything is on track. If your funds are tight, schedule the closing for when you know you'll have been paid and have cash in the bank.

2. Get your money together. Most people have to bring some money to the closing table - even with a 100% loan, there are closing costs and some pre-paid items (such as insurance and taxes) which must be covered at closing. In our area (soutwest Louisiana), those funds must be presented in the form of certified funds, so allow time to stop by the bank and pick up a cashier's or certified check.

3. Check with your closing attorney about title insurance. Your bank will require it on the mortgaged portion of the transaction, but you may want to consider it for yourself, as well - people with significant equity in a purchase should definitely at least consider it. Find out the cost and benefit in advance, so you can make an informed decision and plan to have the money to pay for it, should you decide to purchase it on the unmortgage portion of the house.

4. Shop for your insurance well in advance. Be aware that threatening weather - a hurricane in the Gulf of Mexico, for instance, if you're purchasing a home along the Gulf Coast - can stop the purchase of insurance until the threat has passed; but if you have arranged for that purchase and paid for it in advance, you should be covered (check with your insurance professional for information on this). Shopping in advance also gives you a chance to compare rates, and find coverage that is most advantageous to you. Note that most insurance is a "prepaid item" in that you'll be required to pay for at closing or prior, but each month an insurance premium will be collected from your mortgage to cover the next year's insurance.

5. Do a walk-through. Once the Sellers have moved completely out of the house, do a walk-through prior to closing to make certain nothing has changed in the condition of the house. This includes damage from moving, things which might have been hidden by furniture, or things which have otherwise changed since you inspected the house - appliances which worked before not working, etc.

6. Review your HUD Settlement Statement. When you applied for your mortgage, your mortgage professional supplied you with a good-faith estimate of the costs involved, from origination fees to attorney costs. Compare this to the HUDE-1 Settlement Statement you should receive before closing. Some fees cannot change, while others can vary up to 10%. If there are differences, ask your mortgage professional to explain them.

That said - welcome to your new home!