Buying a home is one of the most important investments you will ever make in your life. Becoming a homeowner is an exciting milestone, but many find that the process can be quite intimidating. Your REALTOR® not only can help you find your perfect dream home, they can also guide you through the home purchasing process. It can take up to 45 days to close on a home. As the closing date gets closer, you want to be prepared as to prevent any delay in the process. Here are the top 5 pre-closing tips for home buyers.
Top 5 Pre-closing Tips for Home Buyers
Tip #1 – Ask your lender any last-minute questions regarding the loan you chose.
Doing your research and asking your mortgage lender any last-minute questions regarding your loan is important before closing. If something doesn’t make sense or you would like to make changes, let your lender know. Being inquisitive and shopping around could save you thousands of dollars in the end.
Tip #2 – Obtain homeowners insurance.
Before closing, you will have to obtain homeowners insurance. Homeowners insurance provides coverage for damage to your home and other structures on the property where your house is located. This paperwork needs to be present during closing. Don’t wait until the last minute to obtain your homeowners insurance as this may delay your loan closing or cause you to rush into a policy that’s not right for you.
Tip #3 – Schedule a walk-through with your REALTOR® prior to closing.
Make sure you schedule a walk-through with your REALTOR® prior to closing on your new home. The walk-through is to ensure that your home is in the same condition as when the offer was made and/or that all issues that you had previously with the home were addressed. Remember that this is your last chance to give your new home a final look before it’s all yours, so don’t rush and voice any concerns you may have.
Tip #4 – Ask your lender how you should bring your down payment to closing.
It’s important to ask your lender how you should bring your down payment to closing as some payment methods are not accepted. Cashier’s checks and certified checks are preferred payment methods for lenders as they are payments certified by your bank. Wire transfers are a good payment option if you are unable to make it to the bank in person. Some lenders are banned from accepting cash payments as they are unaware of its origins. Debit cards and credit cards are risky for a lender as request for large amounts are usually automatically blocked. Lastly, personal checks are typically not accepted due to the fact that anyone can write them.
Tip #5 – Be sure to review your preliminary title report.
Be sure to review your preliminary title report, also known as a “title binder.” This report confirms that your property title is insurable and probably clear. Title insurance protects you in the event somebody later tries to make a claim to your property. It only covers you against unknown issues, not known potential claims in your title commitment. So, look for any possible listed claims for rights of way, easements or boundary disputes, as they are not covered.
*Vetrice Barber is a REALTOR® at eXp Realty. No guarantee, warranty or representation of any kind is made regarding the information on this blog. All information should be independently verified. Vetrice Barber and eXp Realty expressly disclaims any liability in connection therewith.