Things buyers should know for Closing Day
For some, your closing day is formal and filled with multiple pages of documents to review and sign. For others, it is just a formality to get through as you progress to ownership. Regardless of how you view it, here are some helpful things to keep in mind as you go through the day.
Mortgage rates change daily and the quote your lender gave you won’t remain forever. Typically a bank will “lock you in” for 45, 60 or another set number of days. However, once that expires, you may have to pay a higher rate. Sometimes closing dates get pushed out during negotiations so don’t forget to bear in mind when your rate lock expires.
The mortgage process
Some buyers are under the impression that after they have finished the loan application and paperwork then they are all set. However, some lenders will still verify income, assets and employment all the way up to the last minute before closing. It is wise not to make any significant moves during this time period including making any larger purchases like a new car. Sometimes these changes can affect your ability to have your loan approved.
The walk through
In some areas the walk through is a formal happening, in others it is just a checked box. Most contracts provide a walk-through 24 hours before the closing and it is a wise idea to take advantage of this. Check for the overall condition of the home and make sure everything is in fine and working order before you take full ownership.
In some areas the closing happens in parts and the two parties do not meet. In others the buyer, seller and attorneys all meet together and all of the paperwork gets signed and monies get passed.
How else can you prepare?
The best advice is to pay close attention to all of the steps of the purchase and be on alert for any red flags. Be sure to hire a credible mortgage agent, home inspection company and attorney. The better your team, the smoother your process is going to be.