Home buying can be exciting for some, heartbreaking for others (due to circumstances of buying) or a non event for a few. Whatever your personal feelings are about the closing process, there are some things you should know.
Don’t delay, mortgage rates expire.
When you are in the loan process, the lender will “lock” in your rate. This lock doesn’t last forever; usually 45-60 days.
Any number of issues can arise from the time of signing a purchase agreement, until the day of closing. Permits, inspection issues, illegal renovations and liens on a home can make the day of closing further away than expected. A rate lock expiration could cost you a lot of extra money.
The mortgage process isn’t over when you drop off papers.
Many buyers believe once they have dropped off all the documents to the lender, it’s smooth sailing, Well I can tell you for a fact that many times they will need to verify income, assets, credit, and retirement funds just a few days before closing!
I know buyers are excited to fill up their new home with new furniture, appliances and decor, but this isn’t a time to get a new line of credit with anyone. Any blip in your credit report can throw the whole loan process into a tailspin, as changes in your financial status can put your chances of loan approval into jeopardy.
Do your walk through prior to closing.
Do not assume that the sellers have done the necessary repairs which were negotiated during your inspection period. This is the time to make sure that they have been done to the satisfaction of the terms negotiated in the repairs request.
Also, the state of Louisiana Purchase Agreement states that the home must be in the same or better condition as the day you put in the accepted contract. I have seen closings delayed because the lawn was as tall as a small child and the home inside was a dirty mess.
Your Closing day maybe very low-key.
I know you have seen these extremely excited sellers sitting at a closing table handing over a set of keys to equally excited buyers with hands held out with joy. Well, now the rules have changed as far as closings go. Most times the buyers and sellers are in separate rooms and sign papers individually; other times the sellers come to the closing table at the end of the process, which is after the buyer has signed all their loan documents. I know this may ruin the dream you’ve held dear in your mind, but I can tell you that it will still be just as joyous to have your new home after the papers are signed. Plus, with some people, its better to be separated so the atmosphere in the closing room isn’t tense.
During the waiting period prior to closing, it is best for buyers to be proactive and do their research. Make sure you have a good local Realtor® who can off set red flags and be honest with you when things are not going quite right. Always hire a qualified inspector when you have your inspections of your new home. Prior to putting in an offer on a home, get yourself a lender that you are comfortable with, and who is willing to take your calls when you have questions. Lastly, never feel intimidated to ask questions of all these people; as my elementary school teacher said, “there are no stupid questions!”
“Because YOU Matter”
Your Real Estate Whisperer