Buying a new home is an exciting process but it also comes with a gigantic To-Do list. Relocating to a new place has a lot of pieces such as moving your possessions, setting up your utilities and services and perhaps the most complicated, gathering all of the data necessary to close on your property.
You can keep calm and prevent many of the most common closing day problems by just following this simple guide.
Double-Check The Documents
Always make sure to double-check your documents before submitting them to the bank. It is much harder to revise information after the fact so, take your time and even ask for a second set of eyes to check the accuracy of your documents. It could save you days in the closing process.
Being proactive and getting a head start on your paperwork is recommended during the homebuying process. Ask your realtor and/or loan officer for copies of all the necessary paperwork before finding your dream home. This is a good way to approach making sure your home closes on time.
Three days before closing you will receive your Loan Estimate and Closing Disclosure. Make sure you check the numbers for accuracy. You will want to know that all of the amounts such as down payment and interest rates are correct.
Open The Lines of Communication
Your lender already has enough on their plate. For that reason, it is your responsibility to keep the lines of communication open and contact your realtor often. This is the best way to stay in close contact with them and avoid miscommunication.
Staying in touch with your lender and making sure you have all documents and information provided well in advance can help you avoid complications during the closing process. Remember that communicating can eliminate what can go wrong at closing.
It makes it easier to keep track of documents such as insurance, lease agreements, tax returns and proof of funds to make the process go much smoother.
Obtain Down Payment Recommendations
Bringing a cashiers check for your down payment helps to prevent any issues with wires or bank transfers which may often take longer than expected. This can also leave your bank account depleted if you are not paying close attention to expenditures and balances. Keep an eye out for potential for glitches in the bank systems and always think about using a live check. It is your best bet.
Solve Issues With the Title
The closer you get to closing, the more potential issues arise with the title. If the party you are purchasing your new home from has any tax issues or a lien on the property then these details all need to be figured out before closing. Demanding a clean title before closing will help you and your team secure the property of your dreams. So, don’t be afraid to push a little!
Also, be sure to ask for a copy of the preliminary title report from the title company when in escrow. This will help ensure a smooth transfer of title. Remember to purchase title insurance as well, just to be safe from common problems at closing.
Having an idea of where you stand financially and being organized with your data as well as your finances will make your move smooth and successful. So, don’t wait until the process has started to think about it! You can have a calendar ready and many documents prepared before you even find the home of your dreams.
There are plenty of common problems at closing that can be avoided. Just follow this simple 5-step guide to eliminate what can go wrong at closing. Then, you can enjoy the homebuying process and sit back in the home you’ve been wanting.