The process of purchasing a home can be one of the most exciting times of your life. After you have found the perfect home, written an offer on the home, negotiated the offer and all parties have signed the contract, there are still 5 things to do before closing on your new home. Your real estate agent will be able to guide you through these important steps.

1. Home Inspections and Other Contingencies

There are a few contingencies you will have to meet before you can close on your new home.

Home Inspections
The first item on the agenda is to schedule professional home inspections. The inspections should be performed by licensed and insured home inspectors. Standard real estate contracts allow for the buyers to have home inspections performed in the first five to ten business days after the contract is signed. The inspections should include, but are not limited to, a whole house inspection, a radon inspection, a mold inspection, a pest inspection and a lead based paint inspection.

Attorney Approval
If it is standard practice in your state to use real estate attorneys, your attorney typically has between five to ten business days to review, propose any changes to and approve the contract. The attorney will also aid in negotiating any major defect or safety hazard issues found in the inspections.

Home Appraisal Contingency
If you are obtaining a mortgage to purchase your home, your mortgage company will hire an appraisal company to perform an appraisal on the home. They want to make sure that your home is worth the price you are paying for it. Your home is also an investment to your mortgage lending company. They want to protect your investment just like you do.

Financing Contingency
The financing contingency is typically the last contingency you need to meet before closing on your new home. Your mortgage lender will put your file through a final underwriting process before they will grant that you are clear to close.

Other Contingencies
Sometimes there are other contingencies that must be met. One example is if buyers have another home that must sell and close before they can close on their new home purchase.

2. Title

When you close on a home, you will receive the legal title to the property. A title states that you have legal ownership to the property. Your mortgage lending company will require a title search, through public records, on your house and the land it sits on. They want to be sure you are taking clean and clear title to the property. You will need to purchase title insurance to protect you from any legal claims that others may have to the house or land.

3. Mortgage Approval

After all of the aforementioned contingencies are met, your mortgage lender will put your file through final underwriting. Then they will give you a full mortgage approval and a "clear to close." Be sure to do everything possible to keep your credit score the same or better, from the day you apply for your loan through closing day. Once you are approved, the escrow company or attorneys will schedule the closing.

4. Final Walkthrough

A day or two before you close, you'll want to walk through the house one last time. This is called a final walkthrough. The purpose of this is to make sure the house is in the same or better condition than at the time of contract signing. This is also the time to verify that any home inspection issues that were negotiated have been repaired, replaced or otherwise taken care of.

5. Reviewing and Signing Closing Documents

You will be given a chance to review the closing documents before closing. The most important document to review is the settlement statement with all the closing fees on it. If you have any questions, your attorney or escrow personnel can answer them. Once you sign all the documents, you won't be able to make any changes.

Once you have completed these 5 steps and attend the closing on your home, your are proud homeowners. All you have left to do is move in, decorate and let the celebrations begin. Congratulations on your new home.