After the process of searching for and finding your dream home, you want to ensure that your closing goes without a hitch. Unfortunately, surprises can occur and lead to a delay in taking ownership of the home. To avoid a delay, here are some steps you can take before and during closing.
Avoid Making Financial Changes
One of the biggest mistakes you can make prior to closing is to make a change in your personal life that impacts your finances. Even though you received an initial approval from the lender, the loan is not guaranteed until closing. In the few days prior to closing, it is customary for the lender to recheck the loan application to ensure that the applicant is still qualified.
If you have made a change, such as switching jobs or depositing money into your bank account, it could impact your eligibility and result in the lender pulling funding from the home. At that point, you will have to either delay the closing or scramble to find a new lender.
Read the Title Company's Documents
The real estate title company is responsible for managing all of the paperwork connected to the purchase of the home, including the purchase contract. The company will send copies of the documentation to you a few days before the closing is scheduled. It is imperative that you read all of the documentation and check for errors. If you notice any, contact the title company immediately to ask for a correction.
The title company might also request additional information from you, your agent, or your attorney. If so, ensure that the party that needs to provide the information does so. Contact the title company to verify that any documentation needed from your attorney or agent was received.
Arrange for Everyone to Be Present
Ideally, everyone involved in the purchase of the home should be present. Unfortunately, this does not always happen, and the title company is forced to delay the closing. For instance, if a co-signer is not present, the lender might not allow the purchase to continue.
Depending on the state in which you live, it might be possible to have a power of attorney executed when someone is unavailable for the closing. Research your state's laws prior to closing to determine if that is possible if someone is unable to attend the closing.
Consult with a title company like TitleSmart, a real estate agent, and an attorney to determine what other steps you can take to keep the closing on track.