You’ve found your perfect home and all you want to do is unpack the truck and move in. But you’ve got to get through the closing first! Closings can be stressful, as buyers are often already emotionally attached to a property that is not quite theirs yet. We’ve got some great tips to help you have a low-stress closing, and stay psyched to move in to your new home!
1. Setting a closing date
Obviously, you need one. Your agent will work with the seller’s agent to schedule your date, but remember to try and have it coincide with the end of your lease/sale of your current home and at a time when you can get away from work or kids for a few hours. Scheduling at the end of the month can help if you’re tight on cash-that is when you will pay the least amount of interest at close. Strategically planning around these factors can make the big day run much more smoothly.
2. Organize your funds
This can be such a point of stress, it is so important to prepare for whatever cash you may need for closing, and yet sometimes it is overlooked. If you need to cash out stocks or transfer from other accounts, remember: this could take several days, planning ahead will eliminate last minute panic. If you must have a certified or cashier’s check, make sure you give yourself time to get to the bank.
3. Purchase title insurance
Title insurance will help protect the policy holder against trouble with a home’s title. Your lender will insist upon it, and a title problem is not something you want to deal with!
4. Homeowners’ insurance
Do your research and line up your policies to be in effect by your closing. Analysts say that an annual policy should run from about $500-$1000, depending on factors such as your home’s age and size. Remember, if you live in an area where there is elevated risk for natural disasters, you will need separate insurance to protect your home.
5. Review your good-faith estimate and HUD-1 settlement sheet
Compare the good-faith estimate from your lender with your HUD-1 settlement statement, and question any fees that have increased.
6. Do a walk-through of your home
Schedule an appointment to do one last walk-through of your new home to insure that any and all repairs you requested have been done, that no major changes have occurred since your last viewing, and that the sellers left anything they were supposed to and cleared out all of their belongings. Test appliances and electronics, as well as the hot water heater and heating and air systems to ensure that they are properly working. Be sure to check the yard too!
7. Resolve any issues identified in your walk-through
If your walk-through reveals any issues, you may be able to delay the closing until they are corrected; there are other options including asking for a reduced price to cover the problems stated. Your agent will help guide you through this scenario, should it occur.
Buying a house can be an exciting and yet stressful process. Following these tips, and working closely with a respected agent will help eliminate much of the stress involved in purchasing a home. Being prepared puts you ahead of the game!
Tips via Houselogic