After finding the house of your dreams the next step is the house closing. In a perfect world, it should be a simple day when you sign the home purchase agreement, give the home seller the check, and get the keys. But we don’t live in a perfect world so this means that if you don’t prepare beforehand, the closing may be a tragedy. Here’s how to have a stress-free closing day.
Understand the House Closing Process
Make sure you understand the closing process. When you know what’s in store, you know which questions to ask. Speak with the home seller’s realtor and other professionals and ask them what to expect. In addition, collect all the documents that you need for closing negotiations.
Also, take time to talk to the professionals who are representing you. Spend some time together discussing what to expect. Talk with your loan officer and agent and ask them any questions that may be confusing you. Forgotten details can result in canceled or stalled home sales.
Review All Loan Documents Thoroughly
A simple typing error in your loan documents could cause them to be sent back to be redone. Missing details can lead to mistakes in paperwork or an unsuitable payment scenario. Sure, going through the loan documents is time-consuming but it will help you to avoid possible problems before they occur. Your lender should give you the necessary documents a day before the closing.
Important documents to have on the closing day include the check, loan documents, a good faith estimate, a copy of your photo ID, and homeowner’s insurance policy.
Do a Final Check through the House Closing Contract
Your contract allows for a final check of the home a day before closing. Visit the property to make sure it’s in good condition and that the previous owner has vacated. If a previous home inspection revealed problems that were to be fixed, make sure they were. If you find issues during your check, postpone the closing till they are fixed.
Hand Carry the Check to your Closing
One of the reasons you should go through the loan documents beforehand is to ensure you know exactly how much you’re supposed to bring at closing. Carry the check and make sure it’s certified beforehand.
This may sound like an obvious thing, but most homebuyers forget to bring the check. If you can, don't opt for a wire transfer as it can delay the closing process if there are problems with the bank, communications, etc...
Prepare for the Unexpected
Always double-check everything before signing on the dotted line. Most home closings are held up by incorrect mortgage documents. The interest rate or the amount may be wrong and may need to be fixed. To prevent any unexpected delays, set your closing earlier in the day and don’t close on the last day on the contract.
After you’ve dealt with the hardest part – finding the perfect home and negotiating a great deal – only one thing remains the home closing. Use these tips to prepare for the day and it will go smoothly.