Closing day on your home has come. You’ve had the inspections. You’ve been approved for your mortgage. You’ve had every piece of paperwork ready at every point, and you’re ready to sign on the dotted line for your new home.
However, you still have to actually sit down and sign all of the paperwork involved in ACTUALLY closing on your dream house. Here are some tips from an old pro on how to make sure that you don’t trip crossing the goal line.
Scheduling Is Important
Be patient and make sure that everything is set up for you to succeed. I know this sounds like general life advice, but it’s true. Don’t try to do it on your lunch hour, you want to take your time, read over everything, and make sure that you’re set. You also should try to schedule your closing before the end of the month, as early as the 25th or so.
If there’s an issue, you want to have time to solve it. Printers fail, people get sick, cars break down on the way to the appointment. Know that you have every opportunity to get it done that month.
If a closing scheduled on the last day of the month is not completed that day, you will have increased closing costs, beginning at the start of the next month. That’s because prepaid interest due at closing accumulates throughout the month, but it can be avoided or reduced if the closing is near the end of the month.
Take That Final Walk-Through
Make sure that the house is in the same shape that it was when you saw it last. You are entitled to a final walk-through before you close – take advantage of it. Nobody wants to move in, only to find that something has been damaged in between inspection and closing.
Documentation Is Everything
Make sure that you bring every document you’ve been handed throughout the home buying process, including:
- Good Faith Estimate
- Proof of Homeowners Insurance
- Copy of the Contract
- Copy of the Inspection Reports
- Any Documents delivered to the lender for your mortgage approval
You’re going to sign several documents while you’re there. These should include:
- The settlement statement detailing all of the costs related to the home sale.
- Mortgage note stating the buyer’s promise to repay the loan.
- Mortgage or deed of trust securing the mortgage note.
Potential Closing Pitfalls
Lots of things can happen at the last minute to ruin the closing.
A buyer may not have enough money for closing costs.
A seller might not clear up property liens.
Opening a new credit account, securing a new auto loan or charging up an existing credit card can delay or even cancel your mortgage closing.
To mitigate these issues, The Home Loan Expert, Ryan Kelley sits down with every borrower and instructs them on the ins and outs of closing. We give you a guideline of how to proceed so that you will be able to buy your home safely, and move into your house as soon as possible. If you want to talk more about closing, or just have any mortgage questions, call us in St. Louis at 314-781-9400, In Chicago at 773-770-4727, in Indianapolis at 317-550-1515 and in Nashville at (615) 810-8555. You can also apply online at www.thehomeloanexpert.com or follow us on Twitter (@TheHomeLoanEx) to learn all about mortgages and get your mortgage questions answered. Nobody makes it easier to buy a new home or refinance your current one than The Home Loan Expert, Ryan Kelley.