When closing on a house, preparation is essential.
The old saying goes “you can never be over prepared,” and in this case it’s certainly true.
The process of finding your dream home or even your first house can be a lengthy and stressful process. From start to finish there are a lot of extras that come with finding a house that suits you best. Sometimes this makes it easy to forget about the excitement that the process should bring.
Ideally, closing on a house should be a painless experience. The homebuyer and the home seller sign a few documents, exchange key for check, shake hands, and everyone goes home. Unfortunately, it rarely goes that smoothly, but with these preparation tips you may have just hit the jackpot.
1. Give Yourself Time
The process of actually closing on the house should not take long. However, the reason this article exists is because you are preparing in case something does in fact not go according to plan. That being said, allow yourself plenty of time. We advise taking the whole day off. You never actually know how long the process will take until it is over. Do not try and close on a house during your lunch break. Not only will you get frustrated, but so will the homeowner if you begin to rush them, not to mention your boss when you miss half the afternoon unannounced.
2. Be Ready for Mistakes
As much as mistakes are the last thing you want to deal with, the fact is that we are all human, and therefore human error is a factor that could arise. If you have prepared sufficiently for the closing, there shouldn’t be a problem. The truth is, however, mistakes happen. If you have planned for there to be mistakes during the process, you are going to be much better prepared to combat them if they do surface. Always go the extra mile to have more than you think you need, whether it be time, paperwork, or money for fees.
3. Communication
Communication plays a big role in everything we do; closing on a house is no exception. If you have trouble understanding anything regarding the close you must ask questions. Not a lot of people purchase enough property in their lifetime to become experts on the process, so asking questions is totally expected. Your real estate agent has a job; one of them is to answer your questions. The same goes for your lender. There is no shame in keeping on top of the professionals with whom you are working. More often than not they will appreciate your efforts considering as your understanding just decreases the chances of error before their commission is in hand.
4. Review
Think of it as a final exam. As part of your preparation, you sit down one last time and go over everything. Well, closing on a house is the same. Instead of sitting down with your tutor or professor, you should contact your lender and tell them that you want to review the documents before closing. If you don’t feel comfortable, ask your attorney to do it for you. The law states that you have every right to review the closing settlement at least 24 hours before closing. Part of the review period should be allocated toward everything you are going to sign. Do not put yourself in a position where you are presented with paperwork that you haven’t read properly and are expected to sign. This puts you under pressure, and it happens all too often.
5. Bring a Certified Check
Once you have reviewed your documents, you know exactly how much you money you need to bring. The process of buying a house can be exciting, especially when you are so close to closing. Don’t let that cause you to forget a check, and make it a certified one. Wire transfers are commonplace too, but can delay the closing time. Other than the reviewed paperwork, you will be expected to bring some other documentation. Always be sure to check with your lender and real estate agent, but typically these include photo-identification, a good faith estimate, the HUD-1 statement and a copy of the homeowner’s insurance policy.
If you would like to learn more about getting your homeowner’s insurance, please contact the agents at TJ Woods Insurance. Here at TJ Woods, we aim to make you not only comfortable when settled in your home, but provide homeowner’s insurance that will no way hider the buying process.
