Once you have your purchase agreement accepted, the fun begins! There are several things that happen between the time your offer is accepted and your closing date. Here are some tips to make your life easier!
Watch your budget. Remember there are closing costs in addition to your down payment. Talk to your loan officer about what you need for closing. Make sure you have the money you need in the bank so it can be verified before closing.
Avoid opening any new credit cards or taking out a new loan. Lenders will update your credit report before closing. If there are any new inquiries, they will ask about new debt. Depending on your situation, it could affect your loan approval. If you need to open any new debt, ask your loan officer first. Years ago I had a client that needed to buy a new car due to an accident. We worked together to make sure the new car loan would not affect their home purchase.
Don’t change jobs without talking to your loan officer first. In some cases a career change could affect your loan approval. If your current job is hourly or salary, it may be easy to change jobs. However if your job is commission or you are self employed, it will usually make a difference in your loan approval. Try to delay any job changes until after you close.
Make sure you have your homeowners insurance policy. Your lender will need this for underwriting and you will need it before closing. Insurance has become more of an issue lately due to the increased costs. In Minnesota, the age of the roof can be an issue with insurance so start looking for insurance once you have found a home.
When you go to closing, you will usually need a cashiers check or a wire. Your title company or lender will let you know what you need. If you need to wire funds, I always suggest calling the title company to verify the wire instructions. Make sure you get the phone number from your lender and not from the email with the wire instructions. Wire fraud happens and we do everything we can to avoid it, but you never know. Verifying the instructions can help avoid any issues.
Make sure you do a final walk through of your new home. This is your last chance to make sure the home is in the same condition as it was when you wrote your purchase agreement. If there are any issues, you will have time at or before closing to deal with the problems.
The final step in the process is your closing. Lately it has become common for the seller to presign their documents. The buyer will make arrangements with the title company to set a time to sign paperwork. You will need a government issued photo ID, your cashier’s check and any other documents your lender has asked you to bring to closing. Typically your closing will take about an hour and you will walk out as a new homeowner! Then you get the fun process of moving into your new home!
Leslie Vanderwerf, NMLS ID#335509, CrossCountry Mortgage LLC, An Equal Housing Lender, NMLS#3029 – Email – Website
