So after months of preparation, building your credit, and prepping your paperwork, working through the labyrinth of finding a home, getting pre-approval for your financing, you are finally on your way to closing. What a relief, right?
Not so fast. There are a few things you need to know and do first before the closing date. If things go right and you follow these sound advice, then you don’t have to worry about things going haywire.
FLUCTUATING MORTGAGE RATES
As you know, mortgage rates aren’t permanent. The rate today can be different a month or two from now. That is why to secure your rate, lenders offer a lock-in period, typically around 45 to 60 days. Once this period expires, you may have to pay for a higher rate.
To best prepare for this, you should have all documentations and paperworks ready. You must ensure that there are no other existing liens on the property or that changes on the home had been duly documented and dealt upon previously so that it will not pop up to haunt your closing process.
Do not take a major debt, or even apply for a new credit card. Do not change your job or make large withdrawals or deposits on your account that is hard to document. Any changes in your information can cause delay to your underwriting process and prolong the whole affair.
TAKE ADVANTAGE OF WALK-THROUGHS
Some contracts allow you the privilege to have a walk-through of the property and make sure things are prepared for your move-in. This includes repairs as has been negotiated, or if the seller has completely moved out of the property. If there are issues, you have the prerogative to move the closing date.
Make sure all outstanding building permits have been closed, all liens released, and that there are no more issues to be dealt with the local assessor department, for example. Any problem with the title discovered in the last minute can cost you much on closing.
Yes, closing is the final step of your homeownership process, but what you do in the interim could make or break your deal. Having a good team on your side works, along with extra patience and effort in figuring out and setting up things as they should be.