Easy Steps for a Stress Free Closing
First it is best to be represented by an experienced Realtor® when buying or selling & preferably before signing any contract. There is much less chance of misunderstandings and missed deadlines, which can be costly on both sides. The return on your investment can be invaluable.
Hire a LOCAL mortgage broker or lender. Internet and out-of-state lenders can wreak havoc on closing. Find a local lender who will be sitting at the closing table with you and be accountable for what was promised and what is delivered.
Your title company and processor are your friends. They should freely provide information requested, and share information that may be pertinent to the transaction.
Know the deadline dates in your contract. Do you have copies of all relevant documents? What is the effective contract date? When must inspections be performed repairs negotiated, etc.? When is your mortgage commitment due? When must title commitment notices be given?
When purchasing a new home, town house or a condominium, it’s imperative to have your homeowners and flood (if applicable) insurance in place at least one week before closing. (If a hail storm is brewing, you may find yourself uninsured and unable to close.)
If you must bring money to closing, don’t wait until the last minute to make arrangements for a wire or guaranteed funds check. Complete this task at least a day or two before closing, unless you are obtaining funds from a brokerage account or IRA – then it’s imperative that you make those arrangements 7 to 10 days prior to closing.
Try not to schedule your closing on the last day of the month – this is the busiest day of the month for lenders, title agents, and Realtors®. Despite everyone’s best efforts, there are often snafus.
When possible, do your walk-thru the day before closing. If there are any problems or disputes this will allow time to work it out or extend the contract. If an escrow agreement is needed, at the very least, this will give the title agent time to prepare that document.
It’s also advisable to schedule your closing for the mid-morning or early afternoon. If you can’t do a walk-thru the day before, a mid-morning/early afternoon closing gives everyone time to work through any issues that may arise. It also gives the lenders time to get their money to the closing table so the transaction can fund. Unfortunately, there are also times a Seller’s proceeds are not available the day of closing. When that happens, it often means the Seller incurs additional interest charges if there is a mortgage on the property. Finally, Sellers should be prepared to provide wiring instructions or a physical address for overnight delivery if you are leaving town right after closing.
Be sure to notify the closing officier of any changes to dates, times and contractual agreements.