Taking Care of the Details During the Closing Process
You’ve found or had a builder build your perfect home for you, and now it is time for you to complete the transaction and close on your home. Closing day, if you have never done it before, can be a nerve-wracking process, so this article will help you with the requirements for that day.
In the original sales contract, there will be a “close-by” date that doesn’t necessarily mean the actual day that you will close on your home. This date is established to make sure that the contract is completed in a reasonable time period that is acceptable to both the buyer and the seller. That way, there is a deadline to sell or buy the actual home. The
close-by date can be a “goal” of sorts to close on your home. Much will determine the final closing date, mostly the time it takes for the appraisal, loan application, mortgage approval, and a final walk-through if you are building a new home. The title company is the actual entity which sets up the closing for the home. A title search / abstract is done on the property or the home itself to ensure that you have a clear title upon closing. This process can also affect the timing of the closing.
Once the title company and you have received your closing disclosure from the lender, then any financial questions, closing cost questions, or tax questions are answered, and the closing is ready to happen. The title company and lender work closely together to make sure that both parties are able to make the final closing date. So, ideally, you, as the buyer, should be able to set your closing date, but it typically ends up being more of a lender / title company decision.
In order to avoid additional interest and closing costs, you may want to suggest at the beginning of the process that the closing date be as close to the end of the month as possible. A closing date after the 20th of the month can move out the date of your first payment and save the cost of daily interest until the first loan payment is due.
Another thing that you can take care of on your end is to make the move from your old place to your new place as smooth as possible. As soon as you can find out your closing date, you can make sure that you will be able to move out immediately afterwards so that you don’t incur anymore charges at the place where you are currently living.
For the closing day itself, you might want to bring your closing disclosure which the lender will typically send you 3 days prior to closing with you on the day of closing. That way, you can compare what you previously received and the final closing documents to make sure that they match. Also, if you feel like you will have questions or issues at closing, you can make sure that a representative of the lender and your Realtor (if you used one) shows up at closing to support you.
Buying a new home or a previously owned home can be an exciting adventure, but you will have to be prepared to take care of all of the details of the buying process with the help of your Realtor, the lender and the title company. Since everyone involved in the transaction benefits financially, don’t hesitate to reach out to them to ask any questions or get the help you need during the closing process.
