The 8 Most Important Things You Need to Do to Ensure a Smooth Closing
Whether you’re buying or selling, closing on a house can be a complicated process. And if it’s something you’re not accustomed to, it can be pretty intimidating because the numbers after the dollar sign are so high. That’s why the more you can do to make sure you’re closing goes smoothly, the less stressed out you’ll be about it.
While it’s impossible to avoid delays or hiccups entirely, there are some things you can do throughout the process that will minimize the likelihood of any problems coming up.
Respond Quickly To Requests for Information
It’s common for lenders to request additional information after they review your application. It doesn’t necessarily mean there’s a problem. And because there’s so much information on the application, it’s easy to leave something off by accident. The lender also may want documentation for something you put on the application. Jump on it quickly and get it taken care of if you want to avoid slowing down the process.
Don’t Quit Your Job or Change Employers
To the lender, this is a big red flag that they will want to investigate. After all, changing your employment status could impact your ability to make the mortgage payments. If an opportunity comes up that you just can’t pass on, understand that it may delay the process.
Avoid Large Purchases Until After You Close
This is especially true if you have to take on more debt. But even if you don’t have to take on debt, such as paying cash for a new car, it still may raise a question with your lender about your ability to make the mortgage payments. So, it’s just better to wait until after you close.
Schedule a Home Inspection as Early as Possible
Very few homes are in absolutely perfect condition, even houses that are just a few years old. So, there’s a good chance that your home inspection will reveal some repairs that you’ll want made before you close on the house. Those repairs take time, so the sooner you find out about them, the faster you can get them done.
Shop for Homeowner’s Insurance
Whether you’re going to take the recommendation of your mortgage lender, use an insurance company you’ve previously bought insurance from, or shop around on your own, get it resolved quickly. Homeowner’s insurance must be in place in order to close.
Get All of Your Paperwork Together Early
You’re going to sign and initial a lot papers any time you buy or sell a house. Check with your title agent or Realtor to make sure you have a complete list of items you need to provide, and what you need to sign in advance of the closing.
Understand the Instructions for the Wire Transfer
Title companies and mortgage lenders have gotten a lot more careful about wiring funds to or from your bank account. Unfortunately, cyber-criminals have figured out sneaky ways to commit fraud during this process. That level of caution may require a few extra steps to protect both the buyer and the seller.
Most important, don’t wait for the last minute on any of the steps you have to take while preparing to close. Think of it this way, most people will only buy two or three houses in their entire lifetimes. Even though you may be busy, it will help you a lot if you make the time to do this the right way.