Buying a house is always an exciting time but even once you’ve agreed on a price and signed on the dotted line there are still a few things to take care of. The closing on a house doesn’t happen overnight and can even take as long as 60 days on an average. This time can feel like an eternity if you’re already keen to move into your new home. Knowing what’s coming through will make the process a lot smoother and ensure fewer headaches.
Here are five tips for ensuring that the closing process goes as smoothly as possible.
It Takes Time. The closing process is not something you want to rush. Closing on a sale is not something that can be wrapped up in one lunch hour. So, schedule a day in advance to get everything sorted out. It may take up most of the day, so ensure you have a day off for it.
Have All Your Closing Documents In Order. Out of all else, the best advice on closing a sale is to have all your paperwork in order. You never know what you might need at the last minute. So, have a copy of everything on hand. Ensure you have a copy of your contract, all bank documents, home inspection reports, proof of homeowner’s insurance and good faith estimate. Having everything in order means fewer delays. Make sure it’s all well-organized, so you can find the document you need when it’s needed.
Have The Right People In Place. A smooth closing doesn’t just require the buyer and the seller. Arrange for all the right people to be there for a closing. This includes the seller’s real estate agent, the closing agent, the title company, the mortgagor (you) as well as the lender and attorneys (dependent on the state you live in). This is a large reason why closings take time.
Avoid Closing At The End Of The Month. There is little worse than making a closing at the end of the month. It might seem like a good choice but there are many things that could go wrong. If, for instance, the seller lacks a document, it’s after 5pm and the bank and other offices have closed, you won’t be able to close in that month. This kind of delay can increase your closing costs, so ensure there is plenty of time to handle any delays.
Don’t Open New Loans Or Lines Of Credit. Until everything is finalized, don’t open new loans or lines of credit. If you’re paying through a mortgage, lenders tend to look into every area of your finances. This can include both checks on your credit score and credit report. Taking out new loans can negatively impact on your credit report and delay your mortgage application. Until you have the closing finished, hold off on any new loans or lines of credit.
The main thing with all of this is to be organized. If you are unsure of anything, talk to your realtor or your closing agent. Closing a sale takes time, so be ready for anything that can delay that.