Simplifying the Home Closing Process

The home closing process is the final hurdle in the race of buying a house and becoming an official homeowner. You are probably anxious to complete the process, and the last thing you want are last-minute surprises. Here are several ways you can ensure the closing goes smoothly.

Understand the Closing Process

Before you enter closing negotiations, it is crucial to fully understand the process. When you know what to expect, you can ask the appropriate questions and clarify anything that may be confusing. This also ensures that all parties are kept in the loop. Human error is natural, but forgotten details can lead to delayed or canceled home sales. For this reason, it is important that you do the following:

  • Speak with the professionals who represent the home seller. Ask them what you should expect.
  • Identify and gather all the documents that should be brought to closing negotiations.

Review All Loan Documents When Buying a Home

Missing details in loan documents can either lead to mistakes in the paperwork or result in a product or payment scenario that can leave you unhappy. Reading loan documents may seem time-consuming, but it’s the best way to resolve potential problems or misunderstandings before they occur. Generally, Lenders are required to provide you with the appropriate loan documents, by request, at least 24 hours before the closing. When you have received the final version, reread the contents to make sure you know what you are signing. You may want to consult with a lawyer.

Finally, make sure you have the following materials from the home buying checklist on the morning of closing:

  • A check. The loan documents should spell out the amount that you are required to bring to the closing. You may also need to certify the check so that the lender will accept it. You may have the option to wire transfer the funds, but this can take longer and delay closing
  • Copy of your photo ID
  • Homeowners insurance policy
  • Good faith estimate
  • Loan documents

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