Must Know Tips For A Smooth Closing On Your Home

Must Know Tips For A Smooth Closing On Your Home

Buying a house is usually an exciting experience. After all your hard work, your dream house is finally just a few steps to being your own. However, it is only during the whole process that you finally realize that the whole experience can also be nerve wracking.

Now that you’re finally at the finish line, it’s time to close the deal. Firstly, it’s important to note that the closing process does not happen overnight. Sometimes it can take as long as 60 days on average to close the sale of a property. This time frame can feel like an eternity especially if you’re really keen on moving into your new home. However, knowing what’s about to happen and how to prepare for possible roadblocks can make the closing process go more smoothly.

Below are top things to watch out for:



It best not to rush through the closing process. Set aside time to fully go through the whole process. This could mean taking the day off from work because closing cannot happen during your lunch break. There might not be enough time or papers might be delayed due to various reasons. It is better to schedule closing 5-10 days before the end of the month and keep in mind you may need to take the day off from work.


Closing Documents

It is important to bring all the documents you’ve accumulated throughout the buying experience. You will never know which document you need in the last minute. At the very least you should have a copy of your contract, home inspection reports, all bank documents, good faith estimate and proof of homeowners insurance.

Having the documents ready and on hand can save a lot of time going from your house or to the office to fetch what you need. You can separate the documents by folder and label them clearly. This way, you will know what to reach for every time a document is needed. You can also take it a step further by photocopying the documents ahead of time so that you can furnish other people with any copy you need.


The Right People 

There are certain people that should be present during the closing. For example, the seller, the seller’s real estate agent, the title company, the closing agent, the mortgagor (you), the lender and attorneys (dependent on state you live in) could be present during the closing process.


Avoid Month End Closing

We strongly urge to avoid end of the month closing. You might think that it’s best to close at the end of the month, but things can go wrong during the process. What if you or the seller lacks a document and its 5 o’clock and the banks and other offices have closed? If you cannot complete the closing process at the end of the month, your closing costs could increase. When it comes to closing the sale of a property, it is better to have lot of time because unexpected problems could arise that can delay the whole process.


Avoid Loans Or Opening New Lines Of Credit

Avoid making big purchases on your credit card or taking out big loans during the closing process too. Home loans are usually large and represent a big risk for the lender. When you’re applying for a mortgage, lenders will dig into your finances and this usually includes a detailed review of your credit report and a check on your credit scores. Borrowing more money or making big purchases against your credit card could derail the closing process because loans can negatively impact your mortgage application.


Mainly be organized. As stated above, keeping documents organized and on hand can save time and delays. Other ways to avoid delays is by preparing through research. Ask your closer or realtor for anything you are unsure of. This will give you an idea of what to expect and help you avoid mistakes and delays. Looking for more real estate tips? Learn more here.

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