Tips and tricks to arrive at your closing with confidence…and leave with a set of keys.
Congratulations, you’ve navigated a home search, written an offer and are ready to close on your new home. While your work is nearly done, getting the details of the closing right is an important final step in the process.
Like so many steps along the way, an efficient and hassle-free closing is all about risk management. How you prep, what you bring and a few double-checks can save you delays and heartache. Here are a few tips for a successful close:
Tip 1- Schedule Carefully
Trying to close on a home over a lunch hour is not recommended. Instead, we recommend finding a half day that you can clear. It likely won’t take all afternoon, but hiccups in the process do occur and many are out of your control. Pad your time accordingly. You won’t want to rush a process that involves so many important details.
Tip 2- Focus on Your Prework
The majority of issues that delay closing could have been addressed if buyers took the time to do their homework.
A few action items prior to closing:
- Review your loan estimate and sign your closing disclosure.
These documents outline the terms of your purchase and must be in place three days before you close-- but you shouldn’t wait that long. Get them early, verify that all of the details are accurate and fit with your expectations. If you aren’t sure, ask! This is a huge deal for you, but a day at the office for your mortgage pro and they have no doubt had every question imaginable.
- Finalize specifics related to your cashier’s check or wire transfer.
Your lender will be all over this, but mistakes do happen. Verifying and double-checking the spelling of your name, account numbers and other key details can save you an 11th hour surprise.
- Complete a final walk-through.
Most contracts allow you to inspect the property 24-hours prior to closing. This is when you should ensure all repairs have been completed to your satisfaction and the home is ready for the transfer in ownership. If they aren’t or you find issues, this may delay your close, but it doesn’t have to. You may still able to negotiate compensation and continue on schedule.
Tip- 3 Bring Everything You Need
Buying a home is likely to be the single most significant financial transaction you enter. As such it is incredibly formal and regulated. Regulators require much of home purchasers and you should be prepared to jump through all of the hoops.
This means bringing:
- All parties to the transaction
While there are options for buyers who may be out of pocket, securing a power of attorney document or other workarounds can add layers of complexity. It is much simpler to schedule closing at a time when everyone is available.
Your closer can help you understand what is acceptable, but you should make sure that you will be able to bring a driver’s license or other key documents for everyone involved in the transaction. Remember name changes due to marriage or nicknames can have an impact here.
- Your deposit
You’ll need to bring along your cashier’s check or details about the wire transfer that will fund the down payment on your new castle. Again, take a moment to check the details. Wire fraud does occur and an extra perusal of all key documents can help prevent it.
- Your checkbook
In the era of online bill pay, you may not routinely carry a checkbook. However for your closing you should find yours, dust it off and bring it. Unexpected expenses and “missed items” can and do crop up. Most can be addressed in the room, but only if you are prepared.
The Bottom Line
Closing represents the end of a long journey. While finishing strong requires some diligence, your real estate professional, mortgage lender and closer are all adept at navigating this sometimes confusing world. By finding the right partners you can help ensure you are successful.
At Zachary Adams and Associates we realize our buyers may be on a learning curve and that closing on a new home can be intimidating. Rest assured that we can help demystify the process, lay out the steps and work with your mortgage lender and closing company to deliver a hassle-free close.