3 minute read
Real Estate
HARLEM COMMUNITY NEWSPAPERS REAL ESTATE Prepare for purchasing and closing on a home
Once you’ve found the right property, learn what you can expect ahead of the actual purchase and closing.
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You’ve reviewed your spending plan, been preap proved for a mortgage, and made an offer on the home of your dreams. Now, it’s time to close — the final steps before transferring of the property deed to your name after sat isfying all the conditions of the purchase contract. Here are some things to consider as you finalize your purchase.
What should happen leading up to the purchase? • Schedule a home inspec tion and appraisal. This is something your lender might require you to do before providing a mort gage, depending on the state you live in. Some lenders want to make sure the home is worth the pur chase price and that there isn’t any structural issue that may cause problems,
which is also in your own interests.
• Don’t open any new ac counts during this crucial time, because it could im pact your financing if your credit takes a hit. Opening a new account is a hard inqui ry on your credit, causing a dip in your score. It may
also lower the average age of your all your accounts. If
you need help reading your credit report, take a look at
the resources on the Hands on Banking ® website. Prepare your documents for the closing
Double-check that you have everything your lender asked for, or else the comple tion of your loan and purchase may be postponed: • About three days before closing, you’ll likely re ceive closing documents. This package will in clude copies of everything you’ve turned in to your lender, as well as additional documents and paperwork you should read over. • Review the closing doc uments to understand all the terms of financing, and the responsibilities of the lender, seller, and buyer. Take note of what you can do if your lender or seller does anything you haven’t agreed to, and don’t sign documents without fully understanding them. • Also prepare your: • Required documents, which typically include a government-issued photo ID, copy of the contract, home inspection reports, and proof of homeowners insurance. • Banking paperwork laying out your means of paying back the loan, and your down payment funds.
What are some things to expect at closing?
Multiple parties will be present at the closing, such as: • Your and the seller’s real estate agent. The real es tate agents may choose to attend to ensure the closing transaction goes through. • An escrow company. De pending on your location, an escrow officer may need
to be present to handle funds that need to be ex changed. • Your attorney and/or the seller’s attorney. In some states, an attorney may need to be present to com plete the legal transfer of the title. • Your lender. Your lend er may be present to ensure the transaction goes smoothly.
Here are some examples of items you may consider re viewing before you close: • With your lender, confirm
if anything has changed since approval, such as your annual percentage rate (APR) — i.e., your interest rate — or any other term. • With the seller, confirm: • Copies of repair receipts • Utility company informa tion • Trash and recycling collec tion days
When you’re ready, you and the seller will sign off on the purchase documents, and you will sign off on the loan documents. You may be required to wire your funds, or you may need to bring in a cashier’s check for closing costs.
After the closing docu ments are completed and the funds have been transferred, you’ll receive the keys to your new home.
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