Buyer Beware. Know These Things for Closing Day
The home buying process involves many parties and many steps. Even if you have done it once before, there are some things that are important to pay close attention to. Here are 4 things to know so that you are best prepared and don’t have any surprises.
Just because you have finished the loan application and preliminary paperwork doesn’t mean you are all set. Lenders will still want to verify income, assets and employment all the way up to the last minute before closing. Additionally, you should not make any larger purchases during this time period. Significant changes can affect your ability to have your loan approved.
Home Loan Rate
Mortgage rates change regularly and the quote your lender gave you won’t remain current forever. Banks can “lock you in” for 45, 60 or another set number of days so that you can get the best rate. However, once that time period comes and expires, you may have to pay a higher rate depending on what they are then. Closing dates do get pushed out during negotiations so don’t forget to keep in mind when your rate lock expires.
The Final Walk Through
Most contracts will specify a walk-through 24 hours before the closing and it is always a good idea to take full advantage of this. This is your chance to check the overall condition of the home and make sure everything is in good shape and working order before you take full ownership. It is always best to do this right before your closing and after the sellers have moved out.
It is not standard practice for all parties to always meet at the closing. Sometimes you have a seller that is in a different location and may choose to have their attorney represent them instead. It is good to know this in case you have final questions as they may not be there to answer them.
Always pay attention to all of the steps along the way. Should you have questions, always reach out to your agent. Also, make sure you recruit reputable and professional people to work with. That goes from mortgage agents to movers. A stronger team will most likely lead to a more smooth transaction.