Before you get overly excited to move in to your newly purchased homes, you have to deal with the closing day.
When you buy a home, transfer of ownerships is not as easy as paying the seller and in return he or she gives the key to your house.
There are titles, mortgage and some other legal stuff involved so that ownership can be legally transpired to you.
Therefore, the closing day poses as a very important day because this marks the beginning of real ownership.
However, there could be last minute problems that you want to avoid during closing day.
It is necessary that all documents needed and all fees will be settled on this day.
The occurrence of such problems could end up delaying the transfer.
Preparing for Closing The only key to avoid delays to closing is through careful preparation.
Even if you think, you have everything covered, you still need to do some follow-ups, monitoring and double-checking things, to make sure it meets the requirements for the closing day.
Here are some tips for preparation: 1.
Obtain Insurance for homes- Most lenders would require this.
Homeowner's Insurance protects you from incurring overwhelming expenses caused by hazards or things that are beyond your control.
A more specific kind of insurance may be required if the house is located in areas prone to a particular kind of natural disaster.
2.
Check your Truth in lending Act and your Good Faith Estimate.
These two documents can be the cause of delay in closing.
Right after you apply for mortgage, banks are required to deliver these two documents as part of the new disclosure procedures.
Until everything is confirmed correct, the banks can go on with the application process.
However, re-disclosure will be required if discrepancies exist.
When this happens, the application process cannot proceed until the 3rd day from re-disclosure is done.
Therefore, it is necessary that you check everything.
The sooner discrepancies are discovered the more time you have to correct it and make it on time for the set closing date.
3.
Have the house inspected.
You do not want to move in a house that is more of a liability than an asset.
So before you become fully responsible for any defects in the house, you should have everything inspected and at least renegotiate terms.
This way, you can live in your new home with fewer problems on your back and enjoy the purchase for having the best deal.
4.
Call the utilities company.
Every person wants to make sure that everything is up and running, once moved in.
To avoid problems in using utilities, you can call your service providers and ask them to correct any connection problem.
5.
Prepare the funds to pay what is due.
Closing day involves payments of fees, including the down payment.
Therefore, you really have to make sure you have raised enough money to cover for these expenses.
Aside from that, it is necessary that you review the settlement statement to ascertain whether the fees you will be paying are what were agreed upon.
When you buy a home, transfer of ownerships is not as easy as paying the seller and in return he or she gives the key to your house.
There are titles, mortgage and some other legal stuff involved so that ownership can be legally transpired to you.
Therefore, the closing day poses as a very important day because this marks the beginning of real ownership.
However, there could be last minute problems that you want to avoid during closing day.
It is necessary that all documents needed and all fees will be settled on this day.
The occurrence of such problems could end up delaying the transfer.
Preparing for Closing The only key to avoid delays to closing is through careful preparation.
Even if you think, you have everything covered, you still need to do some follow-ups, monitoring and double-checking things, to make sure it meets the requirements for the closing day.
Here are some tips for preparation: 1.
Obtain Insurance for homes- Most lenders would require this.
Homeowner's Insurance protects you from incurring overwhelming expenses caused by hazards or things that are beyond your control.
A more specific kind of insurance may be required if the house is located in areas prone to a particular kind of natural disaster.
2.
Check your Truth in lending Act and your Good Faith Estimate.
These two documents can be the cause of delay in closing.
Right after you apply for mortgage, banks are required to deliver these two documents as part of the new disclosure procedures.
Until everything is confirmed correct, the banks can go on with the application process.
However, re-disclosure will be required if discrepancies exist.
When this happens, the application process cannot proceed until the 3rd day from re-disclosure is done.
Therefore, it is necessary that you check everything.
The sooner discrepancies are discovered the more time you have to correct it and make it on time for the set closing date.
3.
Have the house inspected.
You do not want to move in a house that is more of a liability than an asset.
So before you become fully responsible for any defects in the house, you should have everything inspected and at least renegotiate terms.
This way, you can live in your new home with fewer problems on your back and enjoy the purchase for having the best deal.
4.
Call the utilities company.
Every person wants to make sure that everything is up and running, once moved in.
To avoid problems in using utilities, you can call your service providers and ask them to correct any connection problem.
5.
Prepare the funds to pay what is due.
Closing day involves payments of fees, including the down payment.
Therefore, you really have to make sure you have raised enough money to cover for these expenses.
Aside from that, it is necessary that you review the settlement statement to ascertain whether the fees you will be paying are what were agreed upon.
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